The annual rate of mortgage lending dropped to its lowest level in 21 years in August, according to the latest figures from the Central Bank.
There was a marked weakening in residential mortgage lending in August with the monthly increase of €508 million being just over half that recorded in July.
While August is usually not a strong month for residential mortgage borrowing, this increase was exceptionally low, and was just a quarter of that recorded in the same month in 2006.
The annual rate of increase in residential mortgages declined to 9 per cent in August, from 9.6 per cent in July; the lowest annual rate of increase since mid-1987.
The Central Bank said that new spending and repayments on credit cards were noticeably lower in August than July. Total outstanding indebtness edged above €3 billion but the annual rate of increase was unchanged at 10.2 per cent.
The annual rate of increase in private-sector credit continued to decline last month, reaching a six-year low of 12.9 per cent.
Irish resident non-government deposits increased by €2 billion in August, the largest monthly increase this year. Meanwhile, total lending by credit institutions in Ireland to non-Government Irish residents increased by €3.6 billion in August, or 0.9 per cent, to €399.9 billion.
