The pick up in residential mortgage lending continued in May when the increase of almost €1.7 billion was close to the highest-ever increase recorded in July 2004, according the Central Bank.
Growth in private-sector credit also increased slightly in May, the bank's monthly statistics revealed.
The annual underlying rate was up to 27 per cent in May from 26.7 per cent in April, while total private-sector credit outstanding increased by almost €8 billion during the same month.
The annual growth rate on non-mortgage credit increased from 25.3 per cent in April to 25.7 per cent in May.