Bank of Ireland lends €1 billion in mortgage finance in 2012

Bank of Ireland today (Friday, 18th January 2013) confirms that it provided over €1billion in mortgage lending to customers last year – this is new mortgage funds drawn down by customers in 2012.  Bank of Ireland continues to support customers seeking mortgage finance, which is demonstrated in the fact that it provided circa four in every ten mortgages in 2012. Almost 90% of the €1 billion in mortgage drawdowns was to customers buying their first home or moving to a new home.

On 11th October 2012 Bank of Ireland launched a new €2bn fund to support first time buyers and movers purchase a home during the remainder of 2012 and throughout 2013.  As we start into the New Year, the Bank has already received over €400 million in applications for this new fund.  The volume of applications for the new mortgage fund continues to exceed expectations.

There are some other indicators of an improving mortgage market as we head into 2013:

  • At an industry level, on a year on year basis new mortgage lending in the third quarter of 2012 was up 7%.  This is the first quarter since Q4 2006 to deliver positive year-on-year growth.
  • Bank of Ireland’s new mortgage lending in the second half of 2012 represented a 65% increase on the value of mortgages advanced in the first half of the year.

Jonathan Byrne, Director Consumer Banking at Bank of Ireland commented: ‘We are delighted to have lent over €1bn in mortgage funds to customers during 2012.  We are seeing early and positive signs of improving consumer confidence and an increasing desire to purchase a home amongst our customers. Our mortgage advisors in our branches have seen an increase in the level of enquiries from potential home buyers.  Bank of Ireland has a strategic imperative  to support customers who are seeking mortgage finance.  We invite those looking for a mortgage to come into our branches during 2013 to talk to a Mortgage Advisor about getting a mortgage’.
Bank of Ireland also releases some insights into the profile of First Time Buyers who obtained their mortgage through the Bank of Ireland branch network in 2012.

  • In 2012, the average first time buyer mortgage was €153,000.
  • The average LTV on a first time buyer mortgage in 2012 was 77%, meaning the average first time buyer contributed a deposit of 23%.  This demonstrates how today’s first time buyers are very well prepared for their property purchase.
  • The majority of our first time buyers bought the property with someone else.
  • The average age of our first time buyers was 32.
  • The majority bought in Dublin and the commuter counties