The data released by the CML today shows there has been an increase in lending to first-time buyers, home movers and remortgagors that has continued the upward trend in Northern Ireland over the last three quarterly periods.
The total number of loans advanced for house purchase in Northern Ireland was 2,900 loans in the fourth quarter of 2013, up 7% compared to the third quarter and up 21% compared to the fourth quarter 2012. These loans were worth £270m, up 13% compared to the third quarter and a year-on-year quarterly increase of 29%.
Overall in 2013, the total number of loans for house purchase in Northern Ireland was 9,900, up 11% compared to 2012. The value of these loans was £880m, up 10% compared to 2012.
A total of 1,800 loans were advanced to first-time buyers in the fourth quarter of 2013. This was an increase compared to the third quarter of 13% and up 29% compared to the fourth quarter of 2012.
Loans to first-time buyers in Northern Ireland had a total value of £140m up 17% compared to quarter three and up 27% compared to quarter four in 2012.
First-time buyers borrowed, on average, £70,200 in the fourth quarter of 2013, a slight increase from £70,000 compared to the third quarter.
On average, first-time buyers borrowed 2.85 times their income (the same as in the third quarter of 2013) but this still remains much lower than the UK average of 3.36.
The majority of first-time buyers in Northern Ireland, 72% compared to the 40% UK average, bought properties valued at less than £125,000, and therefore would have avoided paying any stamp duty.
The number of loans advanced to home movers in Northern Ireland was 1,100 in the fourth quarter of 2013, which was the same as the third quarter but up 10% compared to the fourth quarter of 2012. The total value of loans to home movers was £130m, an increase of 8% compared to the third quarter and up 30% compared to the fourth quarter of 2012.
Despite the increase in lending, home movers in Northern Ireland still only accounted for 38% of the house purchase market in quarter four 2013 which is lower than the 55% UK average.
Overall in 2013, the total number of loans advanced to home movers in Northern Ireland was 3,900, which was up 3% compared to 2012. The total value of these loans was £430m, up 8% compared to 2012.
Remortgage lending picked up in the fourth quarter of 2013 in Northern Ireland with £120m advanced to borrowers, up 9% compared to the third quarter of the year and the fourth quarter 2012. The total number of loans for remortgage in Northern Ireland was 1,300, up 8% compared to both the third quarter of 2013 and the fourth quarter of 2012.
Overall in 2013, the total number of loans advanced for remortgage in 2013 was 4,600, which was down 10% compared to 2012. The value of these loans totalled £420m, which again was a decrease of 11%.
Brian McCormick, chair of the CML in Northern Ireland, commented:
"It is encouraging to see increases in all types of lending in Northern Ireland as economic conditions improve. The market was driven by first-time buyers in the earlier quarters of 2013 so it is welcome to see remortgage and home mover lending levels grow, which allows for a degree of optimism going forward in 2014."
