The annual increase in residential mortgages was 12.3 per cent in February, the lowest rate of increase in 14 years, figures published by the Central Bank reveal today.
According to the bank, the monthly increase in residential mortgages in February was well below last year’s level.
"The monthly increase of just €713 million was the lowest in five years, and brought the average monthly increase in 2008 to date to €768," it said. "This is similar to the average monthly increase in 2002, when residential mortgage lending increased by just €8.8 billion over the year.
"However, with the exception of 2007, the months of January and February recorded the lowest increases in residential mortgages every year since 1997."
The Private-Sector Credit (PSC) increase of 15.6 per cent in February was also the lowest annual rate rise since September 2003.
The figures showed that PSC increased by just €914 million, the first time since April 2004 that PSC has increased by less than a billion.
Credit card debts fell too, with the year-on-year percentage change in outstanding indebtedness declining for the sixth consecutive month in February, to 8.2 per cent.
Payments received have exceeded new spending during the last two months, bringing outstanding indebtedness on credit cards down to €2.9 billion in February.
Total lending by credit institutions in Ireland to non-Government Irish residents increased by €914 million, or 0.2 per cent, in February to €379.1 billion.
