Irish borrowers take out £141m for second quarter home improvements – The Irish Times

Irish borrowers took out more than €414 million in personal loans between April and the end of June, up 20% from the same period last year and the most since 2020, the first year of the pandemic.

New data from the Banking and Payments Federation of Ireland (BPFI), the banking industry lobby group, indicates that household levies to fund home renovations as well as weddings, holidays and other categories of spending have exploded in the second quarter compared to the second. quarter of 2021, when Covid restrictions were widespread.

The value of drawings for automobile and automobile financing, meanwhile, fell slightly in the second quarter.

Across Europe, banks reported that household credit demand continued to increase in net terms in the second quarter of the year, largely due to the resurgence of consumer demand following the lifting of public health restrictions. The increase came despite a tightening of lending policies by banks in the second quarter due to higher risk perception stemming from worries about the economic outlook, the European Central Bank pointed out in its banking survey of the zone. euro last month.

Figures from the BPFI indicate that in the second quarter Irish borrowers drew down some €141m to finance home renovations, up 12.7% from the same quarter of 2021.

Loan drawings for other purposes – including education, weddings and holidays – also rose 59.2% year-on-year to 146 million euros.

However, the value of loans for car or automobile financing fell by 0.4% over the period to 128 million euros. Recent figures from the Society of the Irish Motor Industry showed new car sales volumes fell 22% year on year in June and again more than 17% in July as consumers grapple with increases rapid and steep rises in the cost of living. in a context of galloping inflation.

Overall, borrowers drew more than €1.5 billion in the 12 months to end of June, 4.7% more than in the 12 months to end of March .

Furthermore, figures published by the BPFI in June showed that the average mortgage levy by first-time buyers in the second quarter of this year was €263,312, up 13% on the previous year and the level the highest since the BPFI started compiling this data in 2003.

The previous high was 251,831 euros in the first quarter of 2008, just months before the global financial crash.

Some 11,985 mortgage loans were drawn between April and June, up 24.5% compared to the same period in 2021. In value, the increase was 40.6% to reach a total of 3.13 billion euros.

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