Value of mortgage sales up 33% in February, says report

The number of house purchases rose significantly in February, according to new figures released today by IFG Mortgages.

Data collated by IFG Mortgages indicates that there was a 33% rise in the value of mortgages taken out in February.

This spike comes in the wake of several consecutive months of falling volumes and could indicate that home buyers are beginning to see, and take, value in the housing market.

The total value of mortgages taken out in February was, however, still behind the comparable figure for 2007.

“What we’re seeing and what our brokers across the country are reporting are signs of life,” said Suzanne McGuinness of IFG.

“It’s not spectacular, but it is significant. February was a far better month than January.”

“We measure the total value of mortgages taken out and this has been affected this year by the fact that the cost of houses, and therefore the loans needed to buy them, has fallen.”

“The lenders brought in stricter criteria on mortgage approvals over the past number of months and, compared to February 2007, there are now higher interest rates.”

“The fact that we’re witnessing a relative upturn is, therefore, encouraging and if this trend continues through March and into the second quarter the market will be a lot healthier.”

The IFG figures also show that the number of remortgages in January and February is almost identical to the same period last year.

“Outside of Dublin our brokers tell us that there has been a noticeable upturn in the market for houses in the larger towns but that bigger rural properties are still struggling,” added Suzanne McGuinness.