The Council of Mortgage Lenders has revealed that lending in Northern Ireland for house purchase and remortgage rose in the fourth quarter 2015, both on the third quarter and compared to the same period the previous year.
Home-owner house purchase activity increased to 3,700 loans in the fourth quarter, up 6% on the third quarter and 3% on the fourth quarter in 2014. These loans were worth £380m, up 3% quarter-on-quarter and the same period in 2014.
First-time buyers took out 2,100, worth £190m, up 5% by volume and 6% by value compared to the third quarter and up 5% by volume and 12% by value compared to the fourth quarter 2014.
In addition, home movers took out 1,600 loans, up 7% quarter-on-quarter and unchanged on the same quarter 2014. These loans were worth £190m, unchanged quarter-on-quarter and year-on-year. The number of loans for remortgage totalled 1,800 loans, up 6% on the third quarter and 50% on the same quarter in 2014. These loans were worth £190m, up 12% quarter-on-quarter and 58% year-on-year.
Meanwhile, the CML also revealed that during 2015, annual home-owner house purchase loans totalled 13,100, worth £1.3bn, up 2% by volume and 5% by value on 2014.
First-time buyers took out 7,400 loans, worth £660m, down 1% year-on-year by volume but up 6% by value.
Home movers took out 5,600 loans, up 2% compared to 2014. This was worth £680m, up 8% by value year-on-year.
Remortgage lending totalled 6,800 loans, up 45% on 2014. The value of these loans increased 57% year-on-year to £690m.
Derek Wilson, CML chair for Northern Ireland, said: “Northern Ireland home lending this quarter rose to its highest level since mid-2007 and it is welcome to see more first-time buyers purchasing their first home in this period than any other quarter since 2006. While supply issues persist, the wider availability of funding options in the market and housing affordability better than the UK overall, we’d predict this upward trend to continue into the new year.
“Remortgage activity, which has been static for a number of years, has finally seen a resurgence in 2015, albeit from a low base after activity declined greatly post-recession. It’s now at its highest quarterly volume since 2011.”