Mortgage banks PTSB and EBS will soon begin lending again
First time buyers will soon have a greater choice of mortgage lenders to choose from. Two lenders, EBS Buildings Society and Permanent TSB, have announced that they will restart giving out loans to first time buyers and house movers. This is good news for those looking to get their foot onto the property ladder. It will also add much needed competitiveness to the mortgage market.
At the moment, only AIB and Bank of Ireland are lending mortgages to first time buyers and movers. Indeed, many lenders stopped giving out loans due when demand for property dropped dramatically several years ago. However, demand for mortgages has picked up especially in the second half of this year. Figures from the Irish Banking Federation reveal that around 4,000 mortgage applications were approved during the months of July, August and September.
The above figure is a 10% jump in successful applications for the same three months in 2011 and a 23% increase on the amount of mortgage approvals in the second quarter. Overall, 2012 has been a good year for mortgages – it has been the first year since 2006 that the number of mortgages drawn down has increased. And it seems that this increased demand has encouraged EBS and PTSB to return to the market.
PTSB are planning to offer mortgages again sometime in the New Year. But, EBS is already one step ahead by officially declaring it is now ‘open for mortgage business’. When PTSB and EBS recommence mortgage lending, it will boost the number of active mortgage lenders from four to six.