In the first quarter of 2015, first-time buyers in Northern Ireland took out 1,400 loans to purchase a home, valued at £110m. This was down 35% compared to the fourth quarter 2014 by value and down 30% in number of loans. Compared to the first quarter of 2014, total number of loans decreased by 13% and the amount borrowed decreased by 8%.
Home movers saw a decrease in numbers to 1,000 loans, valued at £120m, which was down 38% by volume and down 37% by value compared to the fourth quarter. Compared to the first quarter of 2014, there was a decrease of 9% in volume and unchanged by value.
Remortgage lending remained unchanged by volume and value in the first quarter compared to the fourth quarter 2014 totalling 1,200 loans (£120m). Compared to the first quarter of 2014, activity was up 9% by volume and 20% by value.
House purchase lending in Wales and Scotland was down 26% and 20% respectively on last quarter.
Derek Wilson, chair of CML Northern Ireland, commented:
"Lending in the beginning of the year is usually muted, as seen in the UK overall, due to seasonal factors but there are still encouraging signs the market is continuing to recover. This is the second best performing first quarter of a year for house purchase activity since 2007, just less than last year's level. The number of people remortgaging is higher this time than the two previous first quarters of the year, and affordability remains much better than the UK overall.
"We will likely see activity pick up as we head towards the summer months and with competitive rates on offer there are options out there for those looking to buy a home or seek a new mortgage deal."
