Applications for new mortgages dropped by almost a quarter between April and June this year compared with the same quarter in 2006, according to a report today.
The latest mortgage market profile from the Irish Banking Federation (IBF) and Pricewaterhousecoopers found there were 41,151 new mortgages approved during the second quarter of 2007, with a total value of €8.7 billion.
The one segment of the market that has shown an increase is remortgaging or switching, which has seen a 6.7 per cent growth in value terms, compared with the same quarter in 2006.
The study says switching now accounts for 15.5 per cent of all new mortgages issued, the highest it has been since this series of studies started in September 2005.
Lending for residential mortgages accounted for 17.3 per cent (by value), the lowest proportion since the series started.
IBF chief executive Pat Farrell said the findings in the report were consistent with other indicators in showing a slowdown in the market.