The latest Mortgage Approvals Report issued by the Irish Banking Federation points to a modest recovery. This is the first time since the collapse in lending almost six years ago that there have been signs of growth.

A total of 2,010 mortgages were approved by lenders during the months of November 2012, which represents an increase of 8.6% over the same month a year earlier.

Mortgage approvals point to growth

A majority of the 2,010 mortgage approvals (94%) was for property purchase, which itself showed a year-on-year increase of 35.4%; the balance of approvals was for re-mortgages and top ups.

Earlier this week, Permanent TSB announced plans for a five-fold increase in lending from 2012 levels as it makes a return to the mortgage market for the first time in almost four years.