Mortgage lending at 40-year low, says expert

Despite an increase in loans to first-time buyers and mover-purchasers for the first time since 2006, an industry expert has predicted that 2012 could be the worst year for mortgage lending since 1971.

The latest Irish Bank Federation/PwC Mortgage Market Profile shows 3,225 new mortgages to the total value of €524m were issued during the second quarter, 22.6% more than during the first.

However, the value of the loans issued was €100m less than the corresponding period last year and €115m less than in the last three months of 2011.