Survey finds mortgages doubled in size in five years

MORTGAGES doubled in size in the space of five years, according to a new house price survey that warns wage increases are not keeping pace.

The Irish Property Review from Bank of Ireland (BOI) shows the average mortgage taken out in the year 2000 was for €100,000 but rose to €200,000 last year and is expected to increase further to €222,000 by year’s end.

The review warns that the growing gap between mortgage and income will affect affordability of mortgages. It states: “Average income has not doubled in that period so mortgage debt is outpacing the growth of income, a trend that can not continue indefinitely.”