During the first quarter of 2016, homeowners in Northern Ireland borrowed £340m for house purchase, down 13% quarter-on-quarter but up 26% year-on-year, according to the Council of Mortgage Lenders (CML).
They took out 3,200 loans, down 14% on the previous quarter but up 14% compared to the first quarter 2015.
First-time buyers borrowed £160m, down 16% on the fourth quarter 2015 but up 14% on the first quarter last year. This totalled 1,700 loans, down 19% quarter-on-quarter but up 6% year-on-year.
Meanwhile, homemovers borrowed £180m, down 5% quarter-on-quarter but up 29% compared to a year ago. This totalled 1,400 loans, down 13% quarter-on-quarter but up 17% compared to the same quarter in 2015.
Remortgage activity totalled £170m, down 11% on the fourth quarter 2015 but up 6% compared to a year ago. This came to 1,600 loans, down 11% quarter-on-quarter but unchanged compared to a year ago.
Derek Wilson, CML Northern Ireland chair, said: “Lending in the beginning of the year is traditionally muted due to seasonal factors, as seen in the UK overall, but the year-on-year increases in first-time buyers and home movers are encouraging.
“This is the best performing first quarter of the year in Northern Ireland for house purchase lending since 2007, and remortgage levels have also stayed at a consistent level the past few quarters. As with the rest of the UK, we are forecasting a gradual upward trend in lending in 2016 and 2017.”
Karen Hedges, mortgage manager for First Complete, said: “Since the financial crisis, lenders operating in Northern Ireland have been particularly cautious. That said, house price recovery in the region has been surprisingly strong, increasing between 5%-10% per annum. These figures from the CML highlight the significant growth opportunity in the market, with remortgage, home mover and home purchase activity all up year-on-year, in a period that is traditionally subdued due to seasonal factors.
“Whilst the rest of the UK is plagued by affordability issues, property in the Northern Irish market remains accessible to borrowers at all stages of their homeownership journey, including first time buyers. For those looking to take advantage of favourable market conditions to expand their propositions, this period of stable growth and recovery could well bring the Emerald Isle back into the sights of both borrowers and lenders across the UK.”