Danske Bank doubles NI mortgage lending in Q2
Mortgages with a combined value of more than £113m were made to Northern Ireland consumers a figure that was also more than double the amount it provided in the first quarter of 2016.
The news comes as the bank launches a £1,200 cashback offer on mortgages over £75,000 for first time buyers, home movers and mortgage switchers until November 26 this year.
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Hide AdIt said the figures were the result of a of a competitive customer offer, extending availability through intermediaries, rising demand from first time buyers and an increase in home- owners switching their mortgages.
“What we are seeing in our own figures is mortgages we approved in the first part of the year translating into actual drawdowns as house purchases or mortgage switches completed,” said Niall Harkin, head of mortgage intermediaries.
“As revealed in the latest Council of Mortgage Lenders (CML) figures for Northern Ireland, the value of mortgage lending increased overall in the second quarter, with first-time buyers driving that activity.”
Looking ahead, he said there were two key dynamics at play in the market.
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Hide Ad“On the one hand, the fall in interest rates is brilliant news for consumers and should encourage more people to shop around and switch their mortgage to a better deal.
“New build activity is still positive, supporting the first-time buyer market in particular.
“On the other hand, uncertainty following the EU Referendum can have an impact on confidence and in turn, someone’s decision as to whether they buy their first home or move house.
“Our own research showed a marginal dip in consumer confidence in Q2, but it will be quarters three and four before we start to see how uncertainties about the economic impact of Brexit might impact on confidence and on the housing market.