Mortgages on course to hit lowest level since 1971.

The number of mortgages granted for the purchase of property in the first 6 months of 2012 is now lower than was the case for the first six-month period in 2011 and could fall to their lowest level since 1971 if current trends continue.

Based on the figures published by the Irish Banking Federation, a total of 5,855 mortgages were granted during the first half of 2012. This is 14% fewer mortgages than the same period in 2011, where 6,810 mortgages were drawn down.

Equally, when refinance and top-up mortgages are eliminated from the overall figures (since these loans are not actually used to purchase property), a total of 5,050 mortgages were granted in the first 6 for the purpose of buying a property. These loans were given to first time buyers, existing homeowners and those buying investment properties.

If current trends continue, this would result in little over 10,000 mortgages being granted to purchase a property.

First time buyers, existing homeowners and investors are the three segments which the Department of the Environment has tracked mortgage origination since 1970.

If the numbers hold out on their current path, it would result in the lowest number of mortgages being drawn down than at any point since 1971.

Following are the lending statistics for origination 1970 – 2012 (projected)