Demand for loans is set for ‘biggest ever’ fall this year

Irish banks expect the biggest ever decrease in demand for loans for house purchase and for consumer credit, reflecting the major impact of the public health crisis on households and on consumer behaviour,” the research paper states.

The Central Bank also said banks expected to tighten their credit standards for all categories in the second quarter of the year, particularly for loans to households. There is already evidence of a squeeze on mortgage lending.

A number of banks, including Bank of Ireland, KBC, Ulster Bank and Dilosk/ICS, have temporarily suspended offering exemptions from strict Central Bank lending rules.

Banks are also putting valuations on some properties that are at least 10pc lower than prices already agreed by buyers and vendors, according to mortgage brokers.

 

Read full article: Independent.ie