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)

Year Mortgage Units Data Source
1970 8,929 DOE
1971 11,728 DOE
1972 14,168 DOE
1973 16,286 DOE
1974 18,313 DOE
1975 21,241 DOE
1976 22,051 DOE
1977 22,039 DOE
1978 22,648 DOE
1979 24,742 DOE
1980 26,357 DOE
1981 26,241 DOE
1982 24,113 DOE
1983 27,927 DOE
1984 27,980 DOE
1985 28,060 DOE
1986 27,632 DOE
1987 28,379 DOE
1988 36,939 DOE
1989 38,580 DOE
1990 31,051 DOE
1991 33,720 DOE
1992 42,044 DOE
1993 38,490 DOE
1994 46,483 DOE
1995 47,035 DOE
1996 56,009 DOE
1997 57,901 DOE
1998 61,407 DOE
1999 70,817 DOE
2000 74,258 DOE
2001 66,786 DOE
2002 79,292 DOE
2003 84,749 DOE
2004 98,709 DOE
2005 107,680 DOE
2006 111,253 DOE
2007 84,286 DOE
2008 53,691 DOE
2009 25,172 DOE
2010 18,382 DOE
2011 11,131 DOE
2012 10,100 Projected IBF

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