Banks turn down 40% of mortgage applications
on 14/09/2012 00:00:00
The overall figure is higher as these figures do not include applications and approvals made to and by the EBS.
Last night, AIB issued a statement saying it was now providing 45% of all new mortgages in the market and was approving seven out of 10 mortgages.
"In July alone, AIB approved mortgages with a total value of €156m - the largest monthly approval rate in almost three years," said a spokeswoman.
Meanwhile, Bank of Ireland said its mortgage business is not declining as much as industry figures quoted.
"It is in the bank's interest to support customers seeking mortgage finance. This is evidenced by the take-up of the €1.5bn mortgage fund which we launched to support potential first-time buyers and movers this year. To date, applications of €1,588m have been received," it said.
These figures were given to Michael McGrath, the Fianna Fáil finance spokesman, by Finance Minister Michael Noonan in response to a parliamentary question lodged before the summer.
Mr McGrath said the figures painted "a grim picture for those who want to breathe some life into the property market" by buying a home.
Describing the mortgage market as "dysfunctional", the Cork South Central TD said the overall mortgage application figure was low as "in many cases, people don't proceed to formal mortgage application stage as they are told 'don't waste your time'.
"The banks are now looking at any excuse not to proceed with applications. People who are in employment, have savings records and deposits are being refused. The mortgage market has gone from one extreme to the other. They are now looking for any excuse not to lend to people."