Mortgage lending slumped in the first quarter of the year, with the number of new mortgages issued declining by 66 per cent. According to statistics from the Irish Banking Federation (IBF), just 2,068 mortgages were issued during the first quarter of this year, down from 6,043 as of the last quarter of 2012. The value of mortgage lending also slid, down by 67 per cent to € 331 million for the first quarter of this year.

According to the IBF, the decline reflects a number of factors at play, such as a front-loading of activity into Q4 2012 ahead of the ending of mortgage interest relief; and the fact that the first quarter is normally the weakest, and the fourth quarter the strongest, for activity.

However, the figures also represent a decline from the first quarter of 2012, when 2,630 mortgages were issued at a value of € 450 million.

“The lower level of new mortgage lending recorded in this first quarter comes as no surprise and has been well flagged in the monthly approvals figures published by IBF during the quarter,” said Felix O ‘Regan, IBF director of public affairs. Looking ahead, he said that lenders report a “healthy pipeline of borrower interest”.

In the first quarter,first time buyers and mover purchasers continued to dominate the market, accounting for over 80 per cent (82.1%) of new mortgages issued. In effect, almost 90 per cent (89.5%) of all mortgage credit now goes to the home purchasing segments of the market.