HOME BUYER LENDING ON THE RISE.
HOME BUYER lending in Northern Ireland increased by 17% in the second quarter of 2017, it has emerged.
New figures show that in the second quarter in Northern Ireland: - Home buyers borrowed PS420m, up 17% on the first quarter of 2017 and 24% compared to the second quarter last year. There were 3,800 loans taken out for house purchase, up 15% quarter-onquarter and 15% compared to a year ago.
- First-time buyers borrowed PS230m, up 15% on the first quarter and 21% on the second quarter last year. This totalled 2,400 loans, up 20% both quarter-on-quarter and year-on-year.
- Home movers borrowed PS190m, up 19% quarter-on-quarter and 27% compared to a year ago. This totalled 1,500 loans, up 25% quarter-onquarter and 15% compared to the same quarter in 2016.
- Remortgage activity totalled PS210m, unchanged on the first quarter 2017 and on the same quarter last year. This came to 2,000 loans, down 5% quarter-on-quarter and unchanged compared to a year ago.
Derek Wilson, Chair, UK Finance Northern Ireland Mortgage Committee, said: "House purchase lending in Northern Ireland reached its highest second quarter level since 2007. Firsttime buyers continue to drive that growth, out-borrowing home movers since 2010.
"Affordability conditions are better than in the UK overall, and are assisted by attractive rates being offered by lenders and a wide range of product choice available in the market."
First-time buyer affordability in Northern Ireland was higher in the second quarter than for the UK overall.
First-time buyers typically borrowed PS96,900 (PS137,700 in the UK overall), up from PS95,000 the previous quarter.
The average household income was PS32,200 (PS40,800 in the UK overall), up from PS32,000. The typical income multiple in Northern Ireland of 2.94 (compared to 2.92 the previous quarter) also compared favourably to the UK average of 3.58.
Home movers borrowed an average this quarter of PS118,100 (PS178,200 in the UK overall), up from PS115,000 the previous quarter. The average household income of home movers was PS45,500 (PS55,100 in the UK overall), down from PS46,000.
This meant the typical home mover income multiple in Northern Ireland was 2.57, compared to 2.59 the previous quarter and the UK average of 3.37.