Mortgage drawdowns to drop by 30pc on new rules
The amount of mortgage money drawn down will drop by almost a third in the last three months of the year, compared with the same period in 2014, according to the Association of Expert Mortgage Advisors.
The group wants the Government to put together a "dedicated taskforce" to "look at all the issues combined in order to come up with a comprehensive, well thought-out, workable solution to the current housing crisis".
It thinks mortgage volumes could fall in 2016 because of cash-rich buyers drying up.
"The mortgage market should be 'normalising', which means volumes should increase by up to 50pc next year, but in reality, due to lack of supply and a tightening on lending rules, they are more likely to fall.
"To put this in context, mortgage volumes were €40bn in 2006 and €4bn in 2014. The general consensus is that €10bn would be appropriate for a mature, normal market of Ireland's size," said Ken Murray, a director at the Association.
"Some commentators say we need more lenders in the market to combat our high SVR rate problem - we would agree, but struggle to see the interest for foreign lenders to sell here with (a) the size of the market being so small and (b) the Central Bank restrictions being so punitive.
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