The Irish Banking Federation reported a 16% increase in the volume of mortgages approved but brokers claim that the market remains deeply dysfunctional.

The value of new mortgage lending in Ireland fell by 30% in the first three months of 2012 compared with the last quarter of 2011, an Irish banking federation PricewaterhouseCoopers mortgage market found.

A leading mortgage expert has said that "at least half" of mortgage applications are being refused by banks and has appealed to the financial institutions to use "some leniency" when considering applicants.

THE value of new mortgages issued during the first three months of this year fell 37% on the same period last year to an historic low, according to the latest figures.