NI Sees Increase In House Purchase Loans

Northern Ireland was the only area of the UK to experience an increase in house purchase loans in the final quarter of 2011, according to new figures released today from the Council of Mortgage Lenders (CML) in Northern Ireland.

The 2,500 house purchase loans, worth £240 million, increased 4% by number and value from the third quarter of the year. The number of loans represented an increase of 4% from the last quarter of 2010.

UK wide, lending for house purchase in the final quarter of the year fell 5% by volume and 7% by value from the previous quarter but grew 1% by volume and 3% by value compared to the last quarter of 2010.

1,800 loans for remortgage were taken out in Northern Ireland in the fourth quarter, down 10% from the previous quarter but up 20% from the final quarter of 2010. By value, those remortgaging borrowed £170 million in the last quarter of the year, down 6% from the third quarter but up 13% from the year before.

UK-wide, remortgage lending fell 9% by number and 8% by value from the previous quarter, but increased 8% by volume and 11% by value from the last quarter of 2010.

Over 2011 as a whole, Northern Ireland accounted for just under 2% of the total UK house purchase and remortgage market.

Overall in 2011, the number of loans for house purchase in Northern Ireland, at 8,800 loans, was down by 11%. However, the 7,200 remortgage loans taken out represented a 1% increase from 2010.

The number of first-time buyers in Northern Ireland stayed at 1,400 from the third quarter to the final quarter and increased from 1,100 in the last quarter of 2010. By value, first-time buyers borrowed £120 million in the fourth quarter, up from £110 million in the previous quarter and the final quarter of the previous year.

For 2011 as a whole, 4,900 loans were advanced to first-time buyers, worth £400 million, up in number from 4,700 the previous year but the value of loans was down from £430 million.

Chair of CML Northern Ireland Derek Wilson said: "The increase in house purchase loans is a much needed confidence boost to the market in Northern Ireland. Lack of job security and underlying economic uncertainty have led to a lack of demand for mortgages, particularly among movers.

"We need to try to combat the general feeling of negativity and to promote the value of the wider property market to the economy encouraging confidence to breed confidence."

(CD/GK)