The demand for mortgages continues unabated with the banks lending almost €1 billion to house buyers in May, according to figures released today by the Central Bank.
Monthly credit statistics published by the Central Bank today show that private sector credit grew by 16 per cent, marginally down on April and March. But demand for residential mortgages remained unchanged at 23.6 per cent for the third month in a row.
Mortgage demand has remained remarkably robust despite the economic downturn and fears of a bubble emerging in the property market. Mortgage lending has been growing on average by 20 per cent foe the past twelve months after a brief lull in late 2001 and early 2002.
Total credit outstanding was little changed in May, with a fall of €1.3 billion in lending to IFSC companies being offset by a similar rise in domestic lending. Residential mortgages accounted for almost €1 billion of this rise.
Overdrafts also rose, by €218 million, and other mortgages were up by €33 million. There were substantial falls in the other main loan categories.
Loans up to and including one year fell by €593 million and term/revolving loans were €476 million lower. Repurchase agreements were broadly unchanged.
The Central Bank figures also reveal that the main financial institutions now hold SSIAs worth €2.2 billion.