Mortgage lending drops to 21-year low

Updated: 16:55, Tuesday, 30 September 2008

Figures from the Central Bank show that the annual rate of growth in mortgage lending dropped to its lowest level in 21 years in August.

1 of 1 Central Bank Latest figures on mortgages
Central Bank
Latest figures on mortgages

Residential mortgage lending was up 9% compared with the same month last year, the lowest annual rate since mid-1987.

The increase in mortgage borrowing in August was €508m, just over half the figure for July. The Central Bank said that while August was usually a quiet month, this figure was 'exceptionally low'.

The annual rate of growth for all private credit in the economy slowed to a six-year low of 12.9% in August.

The Central Bank also said that new spending and repayments on credit cards were noticeably lower in August than July.

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