Commenting on the figures Stephen Bloomfield, Danske Bank’s Deputy Managing Director of Personal Banking, said:
“It is perhaps not surprising that the overall figures for the number and value of loans for house purchases in Northern Ireland was down in the first quarter after a record fourth quarter last year.
“While also down slightly year on year from the first quarter of 2014, the level of mortgage activity remains healthy, and both the number of sales and the value of those sales were higher in the first quarter of 2015 than in the same three months in 2011, 2012 and 2013.
“The first quarter is traditionally a quieter time for house buying but Danske Bank anticipates that activity will increase in the second quarter as first time buyers and existing homeowners seek to take advantage of the low interest rate environment and affordable house prices.
“It is encouraging to see that remortgage activity - consumers switching mortgage provider but not moving home – increased year on year after staying relatively flat for much of last year. Increased remortgage activity is perhaps a sign that consumers are starting to shop around for better deals and are prepared to move their mortgage if it will save them money. The mortgage market is competitive, with new product offerings and highly competitive rates being announced every week and that is good for consumers.
“In the first quarter of this year Danske Bank provided over £43m in mortgage lending, which was up 17 per cent on the same period last year. With the housing market slowly starting to recover to more realistic levels, we are seeing increased interest in mortgages from both first time buyers and those switching from other lenders.
“Danske Bank expects the economic recovery to continue through 2015. With favourable credit conditions and the labour market improving, there is a strong chance of increased activity in the housing market between now and the end of the year.”
