The €1.9 billion borrowed for residential mortgages in September has brought the level of mortgage debt to €117.1 billion. This has doubled in just three years.
The figures are contained in the Central Bank's September monthly statistics released today. The bank says that the underlying rate of residential mortgages eased to 26.9 per cent in September, down from 27.1 per cent in August.
According to the bank, if this easing in the mortgage borrowing rate is maintained for the remainder of the year, the annual growth in residential mortgage borrowing would be 25 per cent.
Overall private sector credit now exceeds €302 billion, with an additional €5.8 billion borrowed in September, the second highest monthly total for 2006.
The bank said demand for credit remained buoyant in the month, although overall credit growth eased slightly to 28.1 per cent, down from 28.2 per cent in August. Credit growth hit a six-year high of 30.3 per cen in June.
The adjusted non-mortgage credit growth in September was 32 per cent, up from 31.7 per cent in August.
Last month, the value of overdrafts increased by €424 million while loans for up on and including one year grew by €189 million.
The bank noted that the balance of special savings incentive accounts fell by €184 million, bringing the balance down to €6.2 billion.
