Private sector borrowing hit a five-year high in September with demand for mortgages driving much iof the increase, according to Central Bank data released today.
In the 12 months to September, the amount of money being borrowed grew by 28.6 per resulting in €4.4 billion being drawn down - the fastest rate of growth since March 2000.
Almost €2 billion was loaned for residential mortgages in September, the third highest monthly rise on record, behind June and August of this year.
This brought the annual rate of mortgage lending growth to 25.8 per cent over the 12-month period to September.
The Central Bank noted that if this rate of growth were sustained, the value of outstanding mortgage credit would double in three years.
However, non-mortgage credit growth was also very strong, accounting for 55 per cent of September's lending.
In September, the value of loans up to and including one year rose by almost €1.4 billion, while term and revolving loans rose by €1.2 billion.