Mortgage lending rises to €938million in February

Irish financial institutions lent over €900 million in mortgages in February, a 26 per cent increase on the same month…

Irish financial institutions lent over €900 million in mortgages in February, a 26 per cent increase on the same month last year and the fastest rate of expansion since the Central Bank began recording monthly mortgage lending figures in 1996.

The Central Bank's monthly report on lending shows that private sector credit growth strengthened across the board in February. Non-mortgage credit including loans and overdrafts rose by 15.2 per cent in February compared to the same month last year.

At the end of February there was €56.3 billion in outstanding mortgages while the total level of private sector credit stood at €164.6 billion.

Part of the monthly increase was explained by base effects following weak growth in February of last year, but both mortgage and non-mortgage lending rose strongly over the month.

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Last year, Central Bank inspectors scrutinised the lending practices of Ireland's top home lenders, amid fears homeowners were taking on too much debt.