Mortgages - Ireland - March 2013Although the Irish mortgage market has been hit hard by the events of recent years, there ...
the Consumervariable Rate Mortgages Most Popular, While Most Repaying Capital Plus Interestpreference For Going Direct Whe...
repossessions In Ni Now At ‘critical Point’trend Towards More And Smaller Households In Ni And Roistrong Growt...
figure 24: Number Of Residential Mortgage Loans, 000s, Roi, 2005-12market Segmentationkey Pointsvariable Rate Mortgages Mo...
adviser, By Socio-economic Background, Ni, 2007-12going Direct Becoming More Popular Among All Consumersfigure 32: How Mor...
2009-12signs That Roi Consumers Might Also Be Losing Faith In Banksfigure 47: Agreement With Statement ‘it Is Import...
figure 78: How Mortgage Was Arranged, Roi, 2008-12ni Finance Statementsfigure 79: Agreement With Statements Relating To Fi...
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Ireland Mortgages Industry March 2013 Available on Researchmoz.us

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Although the Irish mortgage market has been hit hard by the events of recent years, there are signs that the market is beginning to show some more positive signs of activity though nothing like the level reached during the economic boom years. This is due primarily to the growing sense that property prices have finally bottomed out.

Nonetheless, lending criteria remain considerably tighter than in the pre-crisis years, while the tolerance for risk is low (and will almost certainly remain so for many years to come, at least). As a result, lending remains subdued and significant downside risks (such as high levels of unemployment and continued job losses) remain.

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Ireland Mortgages Industry March 2013 Available on Researchmoz.us

  1. 1. Mortgages - Ireland - March 2013Although the Irish mortgage market has been hit hard by the events of recent years, there are signs that themarket is beginning to show some more positive signs of activity though nothing like the level reached duringthe economic boom years. This is due primarily to the growing sense that property prices have finallybottomed out.Nonetheless, lending criteria remain considerably tighter than in the pre-crisis years, while the tolerance forrisk is low (and will almost certainly remain so for many years to come, at least). As a result, lending remainssubdued and significant downside risks (such as high levels of unemployment and continued job losses)remain.This report examines the mortgage market in NI and RoI. It assesses the macro and micro factors affecting themarket, and also examines the key players in the market. Drawing on exclusive consumer data, it examines indetail the distribution models within the market, focusing specifically on how consumers arrange mortgages.Some questions answered in this report include: Are there credible, appealing alternatives to taking out amortgage? What type of mortgage is most popular? How are mortgages generally arranged? Have levels ofmortgage ownership been affected by the downturn? What are Irish consumers’ general attitudestowards personal finance?table Of Contentintroductionkey Themes In The Reportdata Sourcesdefinitionsabbreviationsexecutive Summarythe Marketthe All-ireland Mortgage Market Worth Around €111 Billion (£90 Billion)forecastfigure 1: Index Value Of Outstanding Mortgage Debt, Roi And Ni, 2008-18market Factorsproperty Price Stabilisation Will Instil Confidence In Consumersunemployment Represents Major Challenge To Mortgage Providersconsumer Confidence Remains Low, Despite Recent Gainsinterest Rates On Mortgages Not Where They Should Be (theoretically)mortgage Arrears And Defaults A Major Problem Across Irelandcompanies, Brands And InnovationsMortgages - Ireland - March 2013
  2. 2. the Consumervariable Rate Mortgages Most Popular, While Most Repaying Capital Plus Interestpreference For Going Direct When Arranging Mortgagearound A Third Of All Consumers Currently Have Mortgagesirish Consumers Are Debt-averse, Financially-aware And Scepticalissues In The Marketare There Credible, Appealing Alternatives To Taking Out A Mortgage?what Type Of Mortgage Is Most Popular?how Are Mortgages Generally Arranged?have Levels Of Mortgage Ownership Been Affected By The Downturn?what Are Irish Consumers’ General Attitudes Towards Personal Finance?trend Applicationthe Nouveau Poorwhy Buymintel Futures: Generation Nextmarket Overviewkey Pointsproperty Prices Stabilising – But Far From Highs Of 2007ni Prices Up In 2012, But Still Down Almost 60% On Peakfigure 2: Residential Property Prices, All Regions And All Property Types, Ni, 2002-12roi Housing Market (maybe) Stabilisingfigure 3: Residential Property Prices, All Regions And All Types, Roi, 2005-12figure 4: Residential Property Prices, All Regions And All Types, Roi, Jan-dec 2012unemployment Represents Major Challenge To Mortgage Providersroi Unemployment Rate More Than Doubled Since 2008figure 5: Unemployment Rate, Seasonally Adjusted, Roi, 2008-12unemployment Lower In Ni – But Increase In Long-term Unemployedfigure 6: Unemployment Rate, Seasonally Adjusted, Ni, 2009-12figure 7: Unemployment By Age, Ni, Q4 2012irish Consumers Lacking Confidence, Despite Recent Improvementsni Consumer Confidence Improved During 2012figure 8: Consumer Confidence Index, Ni, Dec 2009 To Dec 2012roi Consumer Confidence Still Far Lower Than During Boom Yearsfigure 9: Consumer Sentiment Index, Roi, 2004-13interest Rates Down, But Mortgages Stubbornly Highfigure 10: Selected Variable Mortgage Rates, 80% Ltv, Mainstream Lenders, Roi And Ni, February 2013mortgage Arrears In Roi Now At ‘extraordinary’ LevelMortgages - Ireland - March 2013
  3. 3. repossessions In Ni Now At ‘critical Point’trend Towards More And Smaller Households In Ni And Roistrong Growth In 1 And 2-person Households In Nifigure 11: Projected Households, By Number Of Persons, Ni, 2006-21strongest Growth In Roi Was In 1-, 2- And 3-person Householdsfigure 12: Households, By Number Of Persons, Roi, 1996-11competitive Contextkey Pointsrenting Not Favoured As A Long-term Option By Consumersfigure 13: Whether Consumers Wish To Buy Property In The Future And When, Roi, February 2013three Quarters Of Uk (incl. Ni) Renters Hope To Own Property In Ten Yearsfigure 14: Type Of Tenure Aspired To By Current Private Renters, Two Years And Ten Years, Uk (incl. Ni),2012 .. 31rents Stay Constant, While Property Prices Decline Sharplyfigure 15: Property Sales And Rental Indices, Roi January 2006-december 2012figure 16: Rental Index, Ni, 2008-12strengths And Weaknessesstrengthsweaknessesmarket Size And Forecastkey Pointsall-ireland Mortgage Market Down 28% On Peakfigure 17: Value Of Outstanding Mortgage Debt, Roi, Ni And All-ireland, Actual, Forecast And Projected,2008-17£780 Million In Mortgage Loans Issued In Ni In 2012first-time Buyer Activity Reaches Recent High In Ni In 2012figure 18: Number Of Mortgage Loans Issued To First-time Buyers, Ni, 2007-1210% Decline In Number Of Second Mortgages Issued In Ni In 2012€2.6 Billion In Mortgage Loans In Roi In 2012 (down 93% On Peak)figure 19: Value Of Residential Mortgage Loans, € Million, Roi, 2005-12first-time Buyers Made Up 50% Of All Roi Mortgage Lending In 2012figure 20: Value Of Residential Mortgage Loans, By Category Of Loan, € Million, Roi, 2012market Has A Very Different Complexion To 2007figure 21: Type Of Mortgage As % Of All Residential Mortgage Lending, Roi, 2007 And 2012first-time Buyer Lending Holding Up Better Than Other Categoriesfigure 22: Value Of Residential Mortgage Loans, By Category, €m, 2006-12average Roi Ftb Mortgage Value Down 35% From Peakfigure 23: Average Value Of Residential Mortgage Loans To First-time Buyers, € 000s, Roi, 2005-12huge Decline In Quantity Of Mortgage Loans Issued In RoiMortgages - Ireland - March 2013
  4. 4. figure 24: Number Of Residential Mortgage Loans, 000s, Roi, 2005-12market Segmentationkey Pointsvariable Rate Mortgages Most Popular Among Irish Consumersfigure 25: Type Of Mortgage Rate, Ni And Roi, 2012more Consumers Taking Up The Tracker Optionfigure 26: Consumers With A Tracker Rate Mortgage, Ni And Roi, 2008-12little Change In Number Opting For Variable Rate Mortgagesfigure 27: Consumers With A Variable Rate Mortgage, Ni And Roi, 2008-12decline In Proportion Of Consumers Opting For Fixed Ratesfigure 28: Consumers With Fixed-rate Mortgages, 2 Years And 3-5 Years, Ni And Roi, 2008-12most Consumers Repaying Capital Plus Interestfigure 29: Type Of Mortgage (form Of Repayment), Ni And Roi, 2012companies And Innovationsfunding For Lending Scheme Stimulates Mortgage Lendinglenders Target First-time-buyers In New Yearmortgage Brain Brings Mortgages Into The 21st Centurycompany Profilesallied Irish Bank (aib) Groupbank Of Ireland (boi) Groupsantander Groupdanske Bankkbc Bank Irelandpermanent Tsbulster Bankhalifaxnationwidehsbcchannels To Marketkey Pointspreference For Going Direct When Arranging Mortgagefigure 30: How Mortgage Was Arranged, Ni And Roi, 2012financial Advisers More Popular In Ni Than In Roini Abc1s More Inclined To Go Direct, C2des To Financial Advisersfigure 31: Consumers Who Arranged Mortgage Direct From Bank/building Society And Through FinancialMortgages - Ireland - March 2013
  5. 5. adviser, By Socio-economic Background, Ni, 2007-12going Direct Becoming More Popular Among All Consumersfigure 32: How Mortgage Was Arranged, Ni And Roi, 2007-12the Consumer – Ownership Of Mortgageskey Pointsmortgage Ownership In Decline Among Irish Consumersfigure 33: Mortgage Ownership, Ni And Roi, 2008-12mortgage Ownership Peaks Among Consumers Aged 35-44figure 34: Mortgage Ownership, By Age, Ni And Roi, 2012employment And Social Status Also Key To Mortgage Ownershipfigure 35: Mortgage Ownership, By Socio-economic Background And Working Status, Ni And Roi, 2012only Very Minimal Mortgage Activity In 2012figure 36: When Mortgage Was First Taken Out, Ni And Roi, 2012figure 37: Mortgage Taken Out In The Last 12 Months, Ni And Roi, 2007-12consumers Paying Up To £699 Monthly In Ni, Up To €1,499 In Roifigure 38: Monthly Mortgage Repayments, Ni And Roi, 2012small Shift Towards Higher Repayments In Ni And Roifigure 39: Selected Monthly Mortgage Repayments, Ni And Roi, 2010-12most Mortgages Are ‘joint’ Mortgagesfewer Consumers Making Changes To Their Mortgagesfigure 40: Consumers Who Have Changed Their Mortgage Account, Ni And Roi, 2007-12most Ni Mortgages For 21-25 Years, But More Spread Out In Roifigure 41: Length Of Time Mortgage Taken Out For, Ni And Roi, 2012the Consumer – Attitudes Towards Financekey Pointsfigure 42: Agreement With Statements Relating To Finance, Ni And Roi, 2012downturn And Debt Weighing Heavily On Irish Mindsfigure 43: Agreement With Statement ‘i Don’t Like The Idea Of Being In Debt’, BySocial Class And Workingstatus, Ni And Roi, 2012roi Consumers More Averse To Debt Since Onset Of Crisisfigure 44: Agreement With The Statement, ‘i Don’t Like The Idea Of Being In Debt’,Ni And Roi, 2007-12better Awareness And Knowledge Since Downturnfigure 45: Agreement With The Statement ‘i Am More Aware Of Personal Finance Than I Used ToBe’, Ni Androi, 2007-12are Roi Consumers Losing Trust In Banks?figure 46: Agreement With Statement ‘i Trust Banks/building Societies To Look After MyMoney’, Ni And Roi,Mortgages - Ireland - March 2013
  6. 6. 2009-12signs That Roi Consumers Might Also Be Losing Faith In Banksfigure 47: Agreement With Statement ‘it Is Important That My Bank Understands My IndividualNeeds’, Ni Androi, 2009-12tendency To Take Professional Advice In Decline Among Consumersfigure 48: Agreement With Statement ‘i Usually Consult A Professional Financial Adviser BeforeDeciding Onfinancial Matters’, Ni And Roi, 2008-12appendixni Tgi Usage Tablesfigure 49: Currently Have Mortgage, By All Demographics, Ni, 2012figure 50: Person Whose Name The Mortgage Is Under, By All Demographics, Ni, 2012figure 51: When Mortgage Was First Taken Out, By All Demographics, Ni, 2012figure 52: How Long Ago That Mortgage Was Taken Out, By All Demographics, Ni, 2012figure 53: Type Of Mortgage Owned, By All Demographics, Ni, 2012figure 54: Type Of Mortgage Owned, Ni, 2008-12figure 55: Type Of Mortgage Rate, By All Demographics, Ni, 2012figure 56: Type Of Mortgage Rate, Ni, 2008-12figure 57: First Property With Mortgage, By All Demographics, Ni, 2012figure 58: Monthly Mortgage Repayments, By All Demographics, Ni, 2012figure 59: Consumers Who Have Changed Their Mortgage Account, By All Demographics, Ni, 2012figure 60: Consumers Who Have Changed Their Mortgage Account, Ni, 2008-12figure 61: Increased Value Of Mortgage Since First Taken Out, By All Demographics, Ni, 2012figure 62: How Mortgage Was Arranged, By All Demographics, Ni, 2012figure 63: How Mortgage Was Arranged, Ni, 2008-12roi Tgi Usage Tablesfigure 64: Currently Have Mortgage, By All Demographics, Roi, 2012figure 65: Person Whose Name The Mortgage Is Under, By All Demographics, Roi, 2012figure 66: When Mortgage Was First Taken Out, By All Demographics, Roi, 2012figure 67: How Long Ago That Mortgage Was Taken Out, By All Demographics, Roi, 2012figure 68: Type Of Mortgage Owned, By All Demographics, Roi, 2012figure 69: Type Of Mortgage Owned, Roi, 2008-12figure 70: Type Of Mortgage Rate, By All Demographics, Roi, 2012figure 71: Type Of Mortgage Rate, Roi, 2008-12figure 72: First Property With Mortgage, By All Demographics, Roi, 2012figure 73: Monthly Mortgage Repayments, By All Demographics, Roi, 2012figure 74: Consumers Who Have Changed Their Mortgage Account, By All Demographics, Roi, 2012figure 75: Consumers Who Have Changed Their Mortgage Account, Roi, 2008-12figure 76: Increased Value Of Mortgage Since First Taken Out, By All Demographics, Roi, 2012figure 77: How Mortgage Was Arranged, By All Demographics, Roi, 2012Mortgages - Ireland - March 2013
  7. 7. figure 78: How Mortgage Was Arranged, Roi, 2008-12ni Finance Statementsfigure 79: Agreement With Statements Relating To Finance, By All Demographics, Ni, 2012figure 80: Agreement With Statements Relating To Finance, By All Demographics, Ni, 2012 (continued)figure 81: Agreement With Statements Relating To Finance, By All Demographics, Ni, 2012 (continued)figure 82: Agreement With Statements Relating To Finance, By All Demographics, Ni, 2012 (continued)roi Finance Statementsfigure 83: Agreement With Statements Relating To Finance, By All Demographics, Roi, 2012figure 84: Agreement With Statements Relating To Finance, By All Demographics, Roi, 2012 (continued)figure 85: Agreement With Statements Relating To Finance, By All Demographics, Roi, 2012 (continued)figure 86: Agreement With Statements Relating To Finance, By All Demographics, Roi, 2012 (continued)About Us:Transparency Market Research is a market intelligence company providing global business informationreports and services. Our exclusive blend of quantitative forecasting and trends analysis providesforward-looking insight for thousands of decision makers. We are privileged with highly experienced team ofAnalysts, Researchers and Consultants, who use proprietary data sources and various tools and techniques togather, and analyze information. Our business offerings represent the latest and the most reliable informationindispensable for businesses to sustain a competitive edge.Contact:ResearchMoz90 State Street,Suite 700,Albany NY - 12207United StatesTel: +1-518-618-1030USA - Canada Toll Free 866-997-4948Email: sales@researchmoz.usBlog: http://researchmoz.blogspot.com/Website: http://www.researchmoz.us/Mortgages - Ireland - March 2013

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