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18/02/2009
Mortgage Approvals Slump As Bank Scandal Continues
The Irish Banking Federation (IBF) says the number of mortgages being issued in Ireland fell by 30% last year.
The news comes on the day after Irish Nationwide's Chairman Michael Walsh submitted his resignation over the ongoing scandal among many Irish banks.
The board of Irish Nationwide is meeting today following the resignation of its chairman, Michael Walsh, yesterday.
Mr Walsh resigned following reports that the building society lent former Anglo Irish Bank chairman Sean Fitzpatrick tens of millions worth of sterling and dollars.
The foreign currency was reportedly part of Mr Fitzpatrick's controversial transfer of personal loans between Anglo and Irish Nationwide in order to conceal them from Anglo's auditors.
Backhand loans such as these are sure to further undermine confidence in the Irish banking system, and the news of a 30% slump last year bodes poorly for the future.
But the reduction in demand for such loans has affected the price to the consumer. The IBF says the typical first-time buyer couple in Dublin now spends 23% of their income on their mortgage, compared to 32% two years ago. The federation says the value of these loans also fell by almost one-third during 2008.
More than 110,000 mortgages were issued during the year, one-fifth of them to first-time buyers.
(DW/BMcC)
The news comes on the day after Irish Nationwide's Chairman Michael Walsh submitted his resignation over the ongoing scandal among many Irish banks.
The board of Irish Nationwide is meeting today following the resignation of its chairman, Michael Walsh, yesterday.
Mr Walsh resigned following reports that the building society lent former Anglo Irish Bank chairman Sean Fitzpatrick tens of millions worth of sterling and dollars.
The foreign currency was reportedly part of Mr Fitzpatrick's controversial transfer of personal loans between Anglo and Irish Nationwide in order to conceal them from Anglo's auditors.
Backhand loans such as these are sure to further undermine confidence in the Irish banking system, and the news of a 30% slump last year bodes poorly for the future.
But the reduction in demand for such loans has affected the price to the consumer. The IBF says the typical first-time buyer couple in Dublin now spends 23% of their income on their mortgage, compared to 32% two years ago. The federation says the value of these loans also fell by almost one-third during 2008.
More than 110,000 mortgages were issued during the year, one-fifth of them to first-time buyers.
(DW/BMcC)
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