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Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2018

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  • Kinghan, Christina

    (Central Bank of Ireland)

Abstract

This note provides an overview of residential mortgage lending in Ireland in H1 2018. In total, 17,415 loans are covered with a value of e3.75 billion. The majority (97 per cent) of lending in-scope of the mortgage measures was for primary dwelling (PDH) loans. For firsttime buyers (FTBs), the average loan-to-value (LTV) and loan-to-income (LTI) were 79.6 per cent and 3.1 times gross income, respectively. Regarding the LTV limit, 16 per cent of the total value of second and subsequent buyers (SSB) lending in H1 2018 exceeded the 80 per cent LTV limit. Regarding the LTI limit, 23 per cent of the aggregate value of FTB lending exceeded the LTI limit, with 9 per cent of the value of SSB lending originated with an LTI above 3.5. On average, borrowers with an LTI allowance had larger loan sizes and loan terms, were more likely to be based in Dublin and be a single applicant compared to those borrowers without an LTI allowance. SSBs with an LTV allowance had larger loan sizes and incomes and were younger than those without an LTV allowance. These trends were similar to those observed in H1 2017.

Suggested Citation

  • Kinghan, Christina, 2018. "Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2018," Financial Stability Notes 8/FS/18, Central Bank of Ireland.
    • Handle: RePEc:cbi:fsnote:8/fs/18
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    References listed on IDEAS

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    1. Kinghan, Christina & Lyons, Paul & McCarthy, Yvonne, 2017. "Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2017," Economic Letters 13/EL/17, Central Bank of Ireland.
    2. Kinghan, Christina & Lyons, Paul & McCarthy, Yvonne & O'Toole, Conor, 2016. "Macroprudential Measures and Irish Mortgage Lending: Insights from H1 2016," Economic Letters 06/EL/16, Central Bank of Ireland.
    3. Kinghan, Christina & McCarthy, Yvonne & O'Toole, Conor, 2016. "The Effects of Macroprudential Policy on Borrower Leverage," Economic Letters 08/EL/16, Central Bank of Ireland.
    4. Keenan, Enda & Kinghan, Christina & McCarthy, Yvonne & O'Toole, Conor, 2016. "Macroprudential Measures and Irish Mortgage Lending: A Review of Recent Data," Economic Letters 03/EL/16, Central Bank of Ireland.
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    Cited by:

    1. McQuinn, Kieran & O’Toole, Conor & Allen-Coghlan, Matthew & Coffey, Cathal, 2019. "Quarterly Economic Commentary, Winter 2019," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC, June.
    2. Corrigan, Eoin & O'Toole, Conor & Slaymaker, 2020. "Credit demand in the Irish mortgage market: What is the gap and could public lending help?," Papers WP671, Economic and Social Research Institute (ESRI).
    3. Slaymaker, Rachel & Roantree, Barra & Nolan, Anne & O'Toole, Conor, 2022. "Future trends in housing tenure and the adequacy of retirement income," Research Series, Economic and Social Research Institute (ESRI), number RS143, June.
    4. Gaffney, Edward, 2019. "Mortgage borrowers at the loan-to-income limit," Financial Stability Notes 11/FS/19, Central Bank of Ireland.
    5. McQuinn, Kieran & O’Toole, Conor & Allen-Coghlan, Matthew & Coffey, Cathal, 2019. "Quarterly Economic Commentary, Winter 2019," Forecasting Report, Economic and Social Research Institute (ESRI), number QEC.
    6. Gaffney, Edward, 2018. "Residential property price segments and mortgage finance," Financial Stability Notes 11-18, Central Bank of Ireland.
    7. O'Toole, Conor & Slaymaker, Rachel, 2020. "Review of the Rebuilding Ireland Home Loan scheme," Research Series, Economic and Social Research Institute (ESRI), number RS104, June.
    8. Allen-Coghlan, Matthew & Judge, Conor & O'Toole, Conor & Slaymaker, Rachel, 2019. "A county level perspective on housing affordability in Ireland," Research Notes RN20190402, Economic and Social Research Institute (ESRI).
    9. Gaffney, Edward, 2018. "Residential property price segments and mortgage finance," Financial Stability Notes 11/FS/18, Central Bank of Ireland.
    10. McQuinn, Kieran & O’Toole, Conor & Slaymaker, Rachel, 2021. "Credit access, macroprudential rules and policy interventions: Lessons for potential first time buyers," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 944-963.
    11. Kelly, Jane & Mazza, Elena, 2019. "Mortgage servicing burdens and LTI caps," Financial Stability Notes 13/FS/19, Central Bank of Ireland.
    12. Lyons, Paul & Nevin, Ciarán & Shaw, Frances, 2019. "Real-estate concentration in the Irish banking system," Financial Stability Notes 4/FS/19, Central Bank of Ireland.

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