More interest in loan size than interest rates

As September draws in and life loses its summer sparkle, it is only natural that we begin to take things a touch more seriously.

One of the most obvious and predictable symptoms of this mood shift will come in the property market which, after two months of slumber, is now officially moving back in business.

Buyers are sitting in the shadows anxiously awaiting the release of a raft of properties on to the market and sellers, in their infinite wisdom, are holding back until they see demand reaching its annual peak.

And despite all the stories of economic gloom, one thing that is unlikely to skew this animalistic marketplace is the process of raising cash to fund a property purchase. Numbers released by the Central Bank last week show that the love affair between Irish consumers and their credit facilities did not wane over the summer, despite the sluggishness evident in much of the economy.

A breakdown of the credit figures is particularly intriguing since it shows that mortgage lending, the pièce de résistance of the credit industry, grew faster in July than at any point since the end of 2000.

The expansion is worthy of particular note in light of regulatory concerns over the strictness of the criteria employed by Irish mortgage lenders when they advance loans to homebuyers.

For other commentators however, the credit growth numbers flow naturally from a still-healthy employment market, where unemployment remains below levels experienced in most other countries and job security is within the reach of the majority.

This theory, which will naturally be the one favoured by anybody hoping to sell a home in the next few months, also appears to be borne out in softer research, such as the latest study on first-time buyers from Permanent tsb.

The research shows (perhaps worryingly) that when first-time buyers are about to take the plunge and choose a homeloan provider, they tend not to be overly influenced by the interest rate on offer. They are, it seems, of the view that rates tend to be broadly in line with others on offer across the market.

Whether this is true in reality or not is a moot point, but the really fascinating conclusion thrown up by the study is that buyers are "very interested" in how much their lender will advance in a loan. They are also apparently keen on learning about the flexibility that might be on offer, such as repayment holidays and the ease of making lump-sum repayments.

While perhaps understandable, the divergence between attention paid to the cost of borrowing and the amount borrowed could give rise to some disquiet among those on the pessimistic side of the housing market argument. Have we been lulled into a false sense of security on interest rates as they sit on the brink of rising? How prepared are we for higher financing costs? The answer remains in the future.

In the meantime, Permanent tsb's research has spawned a helpful guide on the whole area of first-time buying, in which would-be homeowners can learn about both the obvious and hidden costs attached to moving in. The lender has concluded that the majority of buyers tend to be shocked at the high cost of solicitors' fees in particular. The survey respondents also said that they had budgeted well for large purchases, such as fridges and carpets, but had "significantly underestimated" the cumulative cost of smaller items, such as connections to service providers and light furnishings.

In its newly-published guide, the bank also offers tips on planning a move, advising that the ESB meter in the old and new home be read on the day of the move, and that An Post should be asked to redirect your post. It is all simple stuff, but for individuals caught up in the process, even the smallest bit of practical advice can make the difference.

Just for the record, first-time buyers are apparently not expecting the market to "level off" any time soon.