The Council of Mortgage Lenders published its Q3 Regulated Mortgage Survey today, revealing that the mortgage lending in Northern Ireland rose by 18% in the third quarter.
Home buyers in the province borrowed £400 million for house purchases last quarter, up 18% quarter-on-quarter and 8% year-on-year.
Commenting on the CML’s figures, Niall Harkin, Head of Mortgage Intermediary Business at Danske Bank, said:
“This survey paints a generally positive picture, with confirmation that mortgage activity in Northern Ireland increased in the third quarter both year on year and compared with the previous quarter. The EU Referendum result does not yet seem to have had an impact on confidence around home buying, albeit there is still some uncertainty about its influence on the economy in the future.
“It’s clear we are experiencing growth in the mortgage market, but that growth is perhaps slower than it could be for a number of underlying reasons, and we continue to see variances across the region.
“On the upside, the first time buyer market is buoyant, with the number and value of loans up both year on year and quarter on quarter. It is a very positive trend that reflects high confidence, although it should be noted that several recent surveys have also noted an increase in the private rented sector. This suggests that many people continue to choose to rent rather than own.
“It is less rosy when we look at the home mover market, where activity is flat compared to the same period a year ago. A contributory factor, I suspect, is the ongoing problem of negative equity in Northern Ireland. Although the position is improving, Northern Ireland still has the highest percentage of homeowners in negative equity of any region in the UK and it will be some time before the situation is normalised.
“Overall, the CML’s Q3 figures suggest the market in Northern Ireland is stable and with the typical income multiple – the amount people are borrowing against their salary – comparing favourably to the UK average, we anticipate capacity for further growth in the market.
“For potential home buyers or home movers, the mortgage market is very competitive right now with the cost of mortgage lending at a record low, so it is a good time to be taking out a mortgage, with lots of innovation in the market, new lenders and a wide range of competitive products on offer.”
