A LACK OF lending and a lack of faith in prospective mortgage holders means poor prospects for the property market, according to the Professional Insurance Brokers Association.
PIBA has carried out a survey of of independent mortgage and insurance brokers, asking them how they feel the market is developing. Less than five per cent say they feel there will be any improvement over the next 12 months.
Rachel Doyle, director of PIBA mortgage services told TheJournal.ie that there is one overwhelming contributory factor. Doyle says that applications for mortgages are simply not being approved, and that this lack of lending is impacting directly on the property market.
Doyle says that the brokers surveyed indicated that those seeking to obtain mortgages are being refused because they don’t have long term employment contracts:
Permanent employment contracts are just not being issued in the private sector, and even people like teachers, who might be on rolling contracts but are in secure employment, are finding it very difficult to be approved.
Doyle says that there is some positivity, pointing out that while 42 per cent of brokers say that 60 to 80 per cent of the applications they send to lenders are being declined, this number is down from 55 per cent of brokers six months ago.
The survey also revealed that 60 per cent of PIBA members believe the bank bailout will have no impact on current lending practices. 23 per cent believe it will have a positive impact, while 11 per cent say it will do more harm than good.
PIBA is calling on the government to come up with a plan to support those who do have mortgages, but are struggling. The group says that it is in the interest of the wider economy, as well as those who are in difficulty, to finalise a package of measures.
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