New mortgage lending in Ireland has exceeded the amount of money being paid-off existing home loans for the first time in seven years. Lending for house purchases rose by a net €27m in the last three months of last year. It was the first net increase in mortgage lending since the end of 2009.

Over the last seven years, mortgage debt being paid off has outstripped new mortgage lending every year. But mortgages for investment in buy-to-let properties fell by €394m in the final quarter of 2016. However, the fact that mortgages issued to buy residential properties was up by €449m, meant there was a net rise of €27m in lending for house purchases in the fourth quarter, the Irish Central Bank said.

Most new borrowers are opting for a fixed-rate mortgage. Fixed-rate loans for homes recorded a net increase of €657m. In contrast, variable rate loans recorded a fall of €208m.