Mortgages - Ireland - March 2017

Mortgages - Ireland - March 2017

Apr 2017 Mintel Wealth ManagementN/A Price :
$ 1360

Having been turned upside-down and inside-out by the financial crisis and ensuing economic recession, the mortgage market in Ireland has somewhat stabilized, but with the Brexit presenting a threat to consumer confidence in 2017, this may see willingness to buy a house decline once again.

Table of Content

OVERVIEW
What you need to know
Issues covered in this Report
Definitions

EXECUTIVE SUMMARY
The market
Figure 1: Value of outstanding mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
Forecast
Figure 2: Indexed value of mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
Market factors
Positive outlook for both Irish economies
House prices in NI and RoI increasing, but still below boom levels
Rents at all-time high in RoI, and rising fast in NI
Mortgage rates low in NI, but comparatively high in RoI
The consumer
Mortgages owned currently by around one in three consumers
Figure 3: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, NI and RoI, January 2017
Fixed rates most popular in NI, variable rates in RoI
Figure 4: Type of mortgage that consumers currently have on their main home, RoI and NI, January 2017
Around four in five consumers do not intend to apply for a mortgage
Figure 5: If consumers are considering applying for a mortgage within the next 12 months, NI and RoI, January 2017
Most consumers solicited professional advice on taking out mortgage
Figure 6: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
Consumers see brokers offering convenience, but want personal touch
Figure 7: Agreement with statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
What it means

THE MARKET - WHAT YOU NEED TO KNOW
Positive outlook for both Irish economies
House prices in NI and RoI increasing, but still below boom levels
Rents at all-time high in RoI, and rising fast in NI
Mortgage rates low in NI, but comparatively high in RoI

MARKET SIZE AND FORECAST
Value of outstanding mortgage debt fell below €100 billion in 2016
Figure 8: Value of outstanding mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
Market not expected to return to growth until 2020
Figure 9: Indexed value of mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
Increase in number of mortgages issued in NI in 2016
Figure 10: Total number of loans advanced for house purchase and re-mortgage, NI, 2010-16
Volume of mortgages up 9% in RoI in 2016
Figure 11: Total number of mortgage drawdowns, RoI, 2006-16
Figure 12: Volume mortgage drawdowns, % of total, by mortgage type, RoI, Q4 2016
Value of mortgages issued in RoI up 17% in 2016
Figure 13: Total value of mortgage drawdowns, € million, RoI, 2006-16
Figure 14: Value mortgage drawdowns, % of total, by mortgage type, RoI, Q4 2016

MARKET DRIVERS
Economic prospects still positive for Irish economies
Figure 15: Economic growth, forecast and projected, NI and UK, 2016-18
Figure 16: Key economic indicators, annual % change, RoI, 2016 and 2017
More than a quarter rate own finances as being 'healthy'
Figure 17: How consumers rate their current financial situation, NI and RoI, January 2017
Steady increase in proportion of RoI consumers rating own finances as 'healthy'
Figure 18: Consumers who rate their current financial situation as being 'healthy', NI and RoI, 2014- 17
Moderate house price growth - but prices nowhere near boom levels
Figure 19: Residential property prices, annual % change, NI and RoI, index, NI, 2007-16
Figure 20: Residential property price index, NI, 2007-16
Figure 21: Residential property price index, RoI, 2005-16
Spiralling rents reaching all-time high in RoI
Figure 22: National Rent Index, RoI, 2006-17
Renting more expensive than purchasing via mortgage loan
Figure 23: Average mortgage payment versus average rent payment, RoI, Q4 2016
Property purchase becoming less affordable for RoI consumers
Figure 24: Affordability index for two-earner household with 30-year mortgage, RoI & Dublin, 2008-16
Rents rising faster in NI than anywhere in UK
Figure 25: Average residential rent, % annual increase, UK (incl NI), January 2017
Figure 26: Average residential rent, £ per month, UK (incl NI), January 2017
Rent affordability remains higher in NI than in UK overall
Figure 27: Household rent to income ratio, %, UK (incl NI), January 2017
Buying property less expensive than renting property for NI consumers
Figure 28: First-time buyer average monthly buying and rental costs, UK and NI, December 2016
Mortgage rates in RoI declining, but still twice euro area average
Figure 29: Mortgage interest rates on principal dwellings, floating and fixed rates, RoI, 2014-16
NI mortgage rates at all-time lows, but higher rates likely

WHAT YOU NEED TO KNOW – COMPANIES AND INNOVATIONS
Political uncertainty could impact mortgage ‘rates war’
Unemployment rate in NI and RoI
Property prices in NI rise but sales reduce
Repossessions across IoI remain a threat to occupants and an inhibitor for those trying to get on the property ladder

WHO’S INNOVATING?
Digital innovations continue to change mortgage industry
Nationwide launches the Flexible Family Deposit Mortgage to help first-time buyers
Pepper innovates and increases presence across RoI and UK

COMPANIES AND BRANDS
Allied Irish Bank
Key facts
AIB mortgage products
First Trust mortgage products
Recent developments
Bank of Ireland
Key facts
Mortgage products – Bank of Ireland NI
Mortgage products – RoI
Recent developments
Danske Bank
Key facts
Mortgage products
Recent developments
Halifax
Key facts
Mortgage products
Recent developments
HSBC
Key facts
Mortgage products
Recent developments
KBC Ireland
Key facts
Mortgage products
Recent developments
Nationwide
Key facts
Mortgage products
Recent developments
Permanent TSB
Key facts
Mortgage products
Recent developments
Santander
Key facts
Mortgage products
Recent developments
Ulster Bank
Key facts
NI mortgage products
RoI mortgage products
Recent developments

THE CONSUMER – WHAT YOU NEED TO KNOW
Mortgages owned currently by around one in three consumers
Fixed rates most popular in NI, variable rates in RoI
Around four in five consumers do not intend to apply for a mortgage
Most consumers solicited professional advice on taking out mortgage
Consumers see brokers offering convenience, but want personal touch

THE CONSUMER - OWNERSHIP OF MORTGAGES
Around a third of consumers currently have mortgage on home
Figure 30: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, NI and RoI, January 2017
Single consumers significantly less likely to have a mortgage
Figure 31: Consumers who currently have a mortgage on the property they live in as their main home, by marital status, NI and RoI, January 2017
Mortgage ownership peaks among 35-54-year-olds
Figure 32: Consumers who currently have a mortgage on the property they live in as their main home, by age, NI and RoI, January 2017
Employment a major factor in mortgage ownership
Figure 33: Consumers who currently have a mortgage on the property they live in as their main home, by work status, NI and RoI, January 2017
ABC1s far more likely than C2DEFs to have a mortgage
Figure 34: Consumers who currently have a mortgage on the property they live in as their main home, by social class, NI and RoI, January 2017

THE CONSUMER - TYPE OF MORTGAGE OWNED
NI preference for fixed rates, while variable rates prevail in RoI
Figure 35: type of mortgage that consumers currently have on their main home, RoI and NI, January 2017
Just over a third of Irish consumers on interest-only mortgage terms
Sizeable minority do not know what sort of mortgage they have

THE CONSUMER - FUTURE INTENTIONS
Most Irish consumers do not intend to apply for a mortgage
Figure 36: If consumers are considering applying for a mortgage within the next 12 months, NI and RoI, January 2017
Rejection of notion of mortgage application growing in NI
Figure 37: Consumers who say they will not be applying for a mortgage within the next 12 months, NI and RoI, December 2014-January 2017
Figure 38: If consumers are considering applying for a mortgage within the next 12 months, by mortgage type, NI and RoI, December 2014-January 2017
Consumers aged 55+ least likely to apply for a mortgage
Figure 39: Consumers who say they will not be applying for a mortgage within the next 12 months, by gender and age, NI and RoI, January 2017
Full-time employees least inclined to reject idea of mortgage application
Figure 40: Consumers who say they will not be applying for a mortgage within the next 12 months, by work status, NI and RoI, January 2017
Figure 41: Consumers who say they will not be applying for a mortgage within the next 12 months, by social class, NI and RoI, December 2014-January 2017
Majority NI buyers either using or intend using Help to Buy ISA Scheme
Figure 42: If consumers are currently using, or planning to use a help to buy ISA scheme for an upcoming mortgage, NI, January 2017

THE CONSUMER - SOURCES OF ADVICE
Majority of consumers sought professional advice on mortgage
Figure 43: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
Preference for direct advice over independent broker
Figure 44: Selected sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
Significant minority rely on incomplete advice or unqualified sources
Figure 45: Selected sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017

THE CONSUMER - ATTITUDES TOWARDS PROFESSIONAL ADVICE AND SOURCES OF ADVICE
Mixed views and opinions about mortgage advice and advisers
Figure 46: Agreement with statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
Mortgage advisers believed to offer convenience and better deals
Figure 47: Agreement with selected statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
Personal recommendations, direct contact key when choosing adviser
Figure 48: Agreement with selected statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017

APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Definition
Data sources
Abbreviations

APPENDIX - THE CONSUMER
NI Toluna data
Figure 49: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, by demographics, NI, January 2017
Figure 50: Type of mortgage that consumers currently have on their main home, by demographics, NI, January 2017
Figure 51: If consumers are considering applying for a mortgage within the next 12 months, by demographics, NI, January 2017
Figure 52: If consumers are currently using, or planning to use a help to buy ISA scheme for an upcoming mortgage, by demographics, NI, January 2017
Figure 53: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, NI, January 2017
Figure 54: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, NI, January 2017 (continued)
Figure 55: Agreement with the statement ‘I’m confident that I could get the best mortgage deal without professional advice’, by demographics, NI, January 2017
Figure 56: Agreement with the statement ‘I would be happy to get advice from a mortgage adviser via digital channels (eg via Skype, smartphone app, online chat)’, by demographics, NI, January 2017
Figure 57: Agreement with the statement ‘I think mortgage advisers provide good value for money’, by demographics, NI, January 2017
Figure 58: Agreement with the statement ‘I would be more concerned about my application being rejected if I applied for a mortgage without using an adviser’, by demographics, NI, January 2017
Figure 59: Agreement with the statement ‘I would only ever pay for advice if I could meet the adviser in person’, by demographics, NI, January 2017
Figure 60: Agreement with the statement ‘I think professional mortgage advice is better than information you can get for free’, by demographics, NI, January 2017
Figure 61: Agreement with the statement ‘I believe mortgage advisers have access to better deals than people arranging their mortgage independently’, by demographics, NI, January 2017
Figure 62: Agreement with the statement ‘I think it’s more convenient to arrange a mortgage/re-mortgage through a mortgage adviser’, by demographics, NI, January 2017
Figure 63: Agreement with the statement ‘I think it is worth paying more for an impartial mortgage adviser’, by demographics, NI, January 2017
Figure 64: Agreement with the statement ‘I am more likely to use a mortgage adviser that has been recommended by a friend/family member’, by demographics, NI, January 2017
Figure 65: Agreement with the statement ‘I am more likely to use a mortgage adviser due to the uncertainty around Brexit’, by demographics, NI, January 2017
Figure 66: Agreement with the statement ‘I would ask my adviser for advice on co-ownership’, by demographics, NI, January 2017
RoI Toluna data
Figure 67: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, by demographics, RoI, January 2017
Figure 68: Type of mortgage that consumers currently have on their main home, by demographics, RoI, January 2017
Figure 69: If consumers are considering applying for a mortgage within the next 12 months, by demographics, RoI, January 2017
Figure 70: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, RoI, January 2017
Figure 71: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, RoI, January 2017 (continued)
Figure 72: Agreement with the statement ‘I’m confident that I could get the best mortgage deal without professional advice’, by demographics, RoI, January 2017
Figure 73: Agreement with the statement ‘I would be happy to get advice from a mortgage adviser via digital channels (eg via Skype, smartphone app, online chat)’, by demographics, RoI, January 2017
Figure 74: Agreement with the statement ‘I think mortgage advisers provide good value for money’, by demographics, RoI, January 2017
Figure 75: Agreement with the statement ‘I would be more concerned about my application being rejected if I applied for a mortgage without using an adviser’, by demographics, RoI, January 2017
Figure 76: Agreement with the statement ‘I would only ever pay for advice if I could meet the adviser in person, by demographics, RoI, January 2017
Figure 77: Agreement with the statement ‘I think professional mortgage advice is better than information you can get for free’, by demographics, RoI, January 2017
Figure 78: Agreement with the statement ‘I believe mortgage advisers have access to better deals than people arranging their mortgage independently’, by demographics, RoI, January 2017
Figure 79: Agreement with the statement ‘I think it’s more convenient to arrange a mortgage/re-mortgage through a mortgage adviser’, by demographics, RoI, January 2017
Figure 80: Agreement with the statement ‘I think it is worth paying more for an impartial mortgage adviser’, by demographics, RoI, January 2017
Figure 81: Agreement with the statement ‘I am more likely to use a mortgage adviser that has been recommended by a friend/family member’, by demographics, RoI, January 2017
Figure 82: Agreement with the statement ‘I am more likely to use a mortgage adviser due to the uncertainty around Brexit’, by demographics, RoI, January 2017

Ask for discount before buying this report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Country :
  • Your Requirement
  • Security Code *
* denotes fields which must be completed

Buy This Report


Select License Type :

$ 1360
$ 1360

Do you wish to check sample of this report?

Have Query?


Research Assistance

For Enquiries, Call :

+1-800-998-4852US Toll Free

Email : sales@marketresearchhub.com

Back To Top