Financial institutions lent €1.6 billion in mortgages in September, the second highest figure ever recorded, and overall credit continues to grow at double digit pace, figures show today.
Credit statistics released today by the Central Bank show mortgage lending continues to be the main force behind the growth of private sector credit, which has risen by almost 25 per cent in the past 12 months.
Non-mortgage credit has also risen sharply by 21.1 per cent. This figure stood at less than 10 per cent at the end of August 2003.
The highest-ever mortgage lending rate was recorded in July 2004 when some €2 billion of residential mortgages was transferred to an Irish credit institution from its parent institution abroad.
Total lending by credit institutions in Ireland increased by over €2.8 billion or 1.5 per cent to €187.7 billion in September.
Almost all of the components of credit increased in September. Term loans increased by €960 million and overdrafts expanded by €83 million.
SSIA balances with credit institutions rose by €138 million to €4.38 billion at the end of September.