Mortgage value increase down a half on 2007

CENTRAL bank credit figures for December show a net increase in residential mortgages of €8.1 billion for 2008, exactly half that recorded in 2007.

The bank said overall lending to Ireland’s private sector also continued to fall as economic fears and a crumbling property market depressed demand.

Changes in residential mortgages in October and November hit historic lows, while demand increased by €281 million in December, leaving the average monthly increase for the year at €676m, compared with €1.4bn in 2007.