The country’s chronic housing shortage is set to persist and push property prices even higher while, at the same time, the Central Bank’s mortgage rules continue to restrict lending to ‘abnormally low’ levels despite a pick-up in April.

A near 6% monthly fall in home loan approvals is “indicative of a dysfunctional market”, an industry representative has stated.

A “major intervention” has been called for to address the mortgage crisis, despite new figures showing increases in approval levels.

Three in four home loans in long-term arrears are not being restructured by the banks despite lenders having a range of mortgage solutions to offer borrowers.

A rise in the number of house repossessions is likely, in the coming quarters, as a means of stemming the strategic non-payment of outstanding home loans, Davy Stockbrokers has warned.

The banks are massaging their mortgage lending figures in an effort to meet their targets, according to members of the country’s leading brokers’ organisations.

ECB chief Mario Draghi announced that a further rate cut could be on the way as the eurozone economy remains fragile.

ECB chief Mario Draghi announced that a further rate cut could be on the way as the eurozone economy remains fragile.

The latest Central Bank figures show that domestic banks and households continue to deleverage, with mortgage and business lending falling and deposits increasing.

The Central Bank are going to be closely monitoring how the new code of conduct on mortgage arrears is used by banks and expect to see a significant increase in restructuring within weeks.

State-owned Permanent TSB will completely overhaul the interest rates it charges on its mortgage products from tomorrow.

New data shows mortgage lenders are increasingly entering into more realistic repayment arrangements with struggling customers.

The buyers of newly built homes should be exempt from paying property tax for 10 years, the Construction Industry Federation (CIF) argues in its pre-budget submission to Government.

The head of the Irish Insurance Federation has urged the Central Bank to investigate “churning” in the life assurance industry.

Goodbody Stockbrokers analyst Eamon Hughes says AIB will have to hike its interest rate on standard variable rate mortgages by a further 1% to 1.5% to return the bank to profitability and enable it to start lending again.

Household lending levels deteriorated further in April, with the Central Bank noting a 4% year-on-year fall for the month.

The monthly banking figures released by the Central Bank gave mixed signals about the health of the overall economy.

Banks lent less to businesses and homes in the first three months of this year as they fear a further deterioration in the economy.

THE European Central Bank is studying ways to reduce Ireland’s €3.1bn-a-year bill to pay off €30bn in promissory notes used to bail out Anglo Irish Bank, now the Irish Bank Resolution Corporation.

THE state should cover the cost of any future drop in the value of new properties being purchased, a leading economist has said.

HOMEOWNERS who bought during the boom will see their mortgage repayments come down as interest relief increases.

AN interest rate cut could be on the cards for early next year resulting in lower mortgage repayments for many homeowners.

FOUR out of five mortgage applications are being refused by financial institutions, according to a survey of brokers.

IRELAND is gaining further credibility, according to European Central Bank (ECB) chief Jean Claude Trichet, who yesterday signalled that interest rates are on hold for now.

DESPITE figures that reveal a rising number of cash- strapped homeowners are falling into arrears, Bank of Ireland has signalled it will raise its lending rate for mortgage holders.

INTEREST rates could rise again before the year is out, following indications from the European Central Bank (ECB).

HOMEOWNERS could be hit with further interest rate hikes later this year, followed by two more next year.

THE number of mortgages given out by banks this year is expected to fall to levels last seen in 1971.

HOUSEOWNERS are facing a further rise in the cost of mortgage repayments next month.

THE Central Bank has been urged to stop banks from “aggressively targeting” consumers by monitoring customer accounts and account transactions.

The €1.9bn levy on private pension pots has been branded a tax on jobs and savings.

THE Irish property market is set to decline or, at best, remain static for the next 12 months, according to the majority of the country’s mortgage brokers.

THE mortgage market is just 10% of what it was at the peak of the housing boom, with brokers reporting very little activity.

THE Government has pledged to help mortgage holders in difficulty as fears mount many more could be plunged into arrears.

HOMEOWNERS are to be hit again by rising mortgage costs as AIB raises its fixed-rate offering.

THE EBS Building Society has announced it will increase its Standard Variable Rate by 0.60% (60bps) from 3.83% to 4.43% (4.5% APR) from 1 April, 2011.

HOMEOWNERS with tracker mortgages have been advised to hold onto the product and not be convinced by banks to change.

MORE than half of all mortgage brokers claim lenders are rejecting up to eight out of 10 applications for home loans.

More than half of all mortgage brokers claim lenders are rejecting up to eight out of ten applications for home loans, it emerged tonight.

IN a separate response on the pensions market in Ireland, the industry in a joint statement warned that some of the proposed pension policy changes, if introduced, would “impoverish” the middle classes.

THE European Central Bank gave no indication it was considering raising interest rates yesterday meaning more good news for tracker mortgage holders.

THE Central Bank has warned that banks arelacking clarity and transparency when communicating with customers who switch their mortgage product from a tracker rate to a variable or fixed rate.