IRISH HOUSEHOLDS ARE borrowing less, saving more and paying off their debts according to figures released by the Irish Central Bank today.
Irish households had outstanding loans of just over €100 billion at the end of March 2013, a decline of 1.5 per cent. The majority of these, or some €84.3 billion worth, were loans for house purchase indicating that most households in debt are paying off mortgages.
The figure for mortgage debt is the largest decline since June 2010 with tracker mortgages accounting for 50 per cent and standard variable mortgages making up just over 4o per cent.
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Loans for principal dwellings accounted for more than three quarters of mortgages at the end of March this year, a drop of €439 million.
The outstanding amount of loans for buy-to-let residential properties decreased slightly to stand at €19.4 billion at end-March 2013; representing 23 per cent of mortgages.
Loans for holiday homes or second homes accounted for just one per cent of loans for house purchase.
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Non housing related lending or other personal loans accounted for 16 per cent of total credit advanced to Irish households. However lending in this category fell 12.1 per cent in the year ending March 2013.
While it is clear Irish households are focusing on paying down their mortgage debt, some are still saving with a total of €87.2 billion in deposits by the end of March 2013, an increase of 0.2 per cent on the last quarter.
- All images from the Irish Central Bank.
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