Mortgages crash to a 40-year low
MORTGAGE lending has fallen to its lowest level in 40 years.
Experts expect just 11,000 new mortgage loans to be approved this year -- the lowest level of lending since 1971.
Analysts blamed the mortgage meltdown on the fact that many buyers were unable to get finance, while others considering buying were holding back until house prices stopped falling.
A study of mortgage statistics shows that lending is back at the level it was just before Taoiseach Enda Kenny first entered the Dail. Mr Kenny is the 'father of the Dail', as he is the longest-serving TD.
Just 3,259 mortgages were drawn down in the first three months of this year. If this trend continues there will be at most 11,000 mortgages approved for the entire year, according to an analysis by Frank Conway (above), director of personal finance website MoneyCoach. He said that the last time lending was as low as this was in 1971, based on Department of Environment statistics.
"We would have to go all the way back to 1971 to match the 11,000 mortgage origination statistics and 1972/1973 to match the 15,000 figure," Mr Conway said.