THE VOLUME OF MORTGAGES being approved by Irish lenders rose slightly in the second quarter of 2011 – but remains at less than half of the numbers being approved at the same stage last year.

Figures produced by the Irish Bankers Federation showed that 3,551 new mortgages were approved in the months of April, May and June, with a total value of €624 million – meaning an average value of €175,725 per new mortgage.

The volume of new lending was up by 9 per cent on the first quarter of 2010, but down by 54.6 per cent on the same quarter of last year.

The IBF said the increase in lending for the second quarter was line with general seasonal trends.

First-time buyers and mover-purchasers continue to dominate the market, accounting for 78 per cent of the total value of new mortgages, and 70 per cent of the applications approved.

The federation said its member lenders had reported a continued ‘subdued’ demand for new finance, with the current jobs market, the weakening of consumer sentiment, and property price trends all helping to deflate the market.

IBF chief executive Pat Farrell said the difficulty in the mortgage market “reflects the general macroeconomic environment”.

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