The total amount of outstanding mortgages on the books of Irish lenders is continuing to decline, suggesting lending for house purchases is still relatively low despite the recent recovery in property prices.
Figures from the Central Bank show the total mortgage loan book stood at €118.9 billion at the end of June this year, down from €121.9 billion in previous quarter, representing the 18th consecutive quarterly decline.
This means mortgage repayments are still outstripping new loans.
The figures also tally with suggestions that recent property price inflation, most notably in Dublin, is being driven by a combination of cash buyers and supply shortages rather than new mortgage lending.
The figures showed the outstanding amount of on-balance sheet loans for house purchase stood at €80.9 billion at the end of June.
A further €38 billion of securitised mortgages, which continue to be serviced by resident credit institutions, was also outstanding.
The Central Bank said floating rate mortgages, which include standard variable rates, tracker rates, and mortgages with a fixed rate up to one year, declined by €527 million over the quarter.
However, these types of mortgages still accounted for 93 per cent of the outstanding loan book for house purchases.
Tracker mortgages alone accounted for 49 per cent of outstanding house purchase loans and recorded a €816 million decrease in the second quarter.
Standard variable rate mortgages decreased by €45 million during the same period, and accounted for 42 per cent of outstanding house purchase loans at the end of June.
Fixed-rate arrangements accounts for only 7 per cent of the outstanding loans, following a quartetly decline of €57 million.
A further breakdown of the numbers showed for loan for principal dwellings, which accounted for 76 per cent of the total, fell by €220 million on a quarterly basis.
This reflected a fall of €199 million in floating rate mortgages and a fall of €21 million in fixed rate mortgages.
Tracker mortgages and standard variable rate mortgages on principal dwellings fell by €537 million and €1 million respectively.
The outstanding amount of loans for buy-to-let properties, which represents 23 per cent of total loan book for house purchases, fell by €342 million over the quarter, to stand at €18.6 billion.
This decline reflected a fall of €307 million in floating rate mortgages, the majority of which was seen in the tracker mortgage category.
Overall, the figures showed total credit to Irish private households outstanding on the balance sheet of resident credit institutions stood at €94.5 billion at the end of June, representing a quarterly decline of 0.8 per cent and an annual decline of 3.6 per cent.
Meanwhile, total deposits held in resident credit institutions by Irish private households were €85.9 billion, representing an annual decrease of 0.5 per cent.
