INCREASING TREND FOR HOMEOWNERS TO CLIMB THE PROPERTY LADDER

-Over EUR350 million lent to Trading Up Buyer Mortgages in the first six months of 2004 - an increase in excess of 50% on the same period in 2003

New figures from Bank of Ireland Mortgages released today Tuesday, 28th September 2004 reveal strong activity in the trading up buyer segment. The total amount lent to trading up buyers in the first six months of 2004 was over EUR350 million, an increase of 50% on first six months of 2003. Currently, trading up buyers loans account for one in five new mortgages.

An analysis of Bank of Ireland Mortgages' database reveals that 70% of customers trade up from their first home and 30% trade up from their second or subsequent home.

In the first six months of 2004, the average trading up buyer loan in Dublin stood at EUR280,000 up from EUR240,000 in the same period last year, an increase of 17%. Outside Dublin the average loan was EUR180,000, up from EUR150,000 in the same period in 2003, an increase of 20%.

Commenting on these statistics Olive Moran, Marketing Manager, Bank of Ireland Mortgages:

"We attribute the significant growth in trading up buyer activity to the fact that first time buyers outgrew their starter home within 5 years and were in a financial position to trade-up to a home more desirable to them. These homeowners benefited from the accumulation of equity during this time enabling them to make the move. Despite higher property prices, more than 55% of trade up activity was in the Greater Dublin Area."

Another notable trend is that growth in lending to trading up buyers is exceeding growth in lending for the purpose of equity release. Statistics reveal that the amount lent through equity release was EUR200 million in the first six months of this year, an increase of over 35% on the same period last year compared to 50% growth in lending to buyers trading up.

The average equity release loan was EUR59,000 in the six months to June 2004, an increase of 16%. The average equity release loan in Dublin was higher at EUR72,000.

"A view held by many is that equity release to fund home improvements has been increasingly becoming a preferred alternative to trading up, due to the prohibitive costs associated with moving property (i.e. stamp duty, auctioneer and legal fees). However, many of these homeowners did not have the scope to extend or upgrade their home as they purchased a starter home and, therefore, had to move out of necessity to secure more space or to live in their preferred area," concluded Ms. Moran.

Further information:

Olive Moran
Marketing Manager
Bank of Ireland Mortgages
Tel: 01 6113525
Mobile: 086 6622333

Anne Mathews
Media Relations Manager
Group Corporate Communications
Tel: 01 604 3836
Mobile: 087 246 0358