Why has lending for mortgages in Ireland suddenly stalled?
Smart Money: are we seeing a temporary slowing in mortgage borrowing or something more fundamental?
Lending volumes shot up through late 2016 and early 2016 from low levels and have now topped out
Mortgage lending is stalling. Having grown very strongly over the past couple of years, the latest figures show that growth in new loan approvals has now slowed sharply. Why is this happening? And what does it mean for the market? It seems a number of factors are in play including the impact of bank lending rules, the state of the market and affordability for buyers. The key issue is whether we are seeing a temporary slowing in mortgage borrowing or something more fundamental.
What do the figures show?
The latest data from the Banking and Payments Federation of Ireland (BPFI) is quite striking. A straight comparison between September of this year and September of last year shows a 4.3 per cent rise in the number of mortgage approvals. But you have to dig down a bit for the real story.