The value of outstanding mortgage loans fell by €18 million in May as repayments outstripped the value of new lending, according to monthly Central Bank data.
This trend, which first emerged in April, reflects the continuing low levels of activity on the housing market, the bank said.
Outstanding mortgage debt last month stood at €148.2 billion with bank saying the amount of debt has increased by only €296 million so far this year, compared to €4.6 billion over the same period in 2008.
This brought the annual rate of increase in mortgage lending to a record low of 2.6 per cent in May, from a revised 3.3 per cent in April.
The overall rate of private-sector credit growth declined by almost €1 billion last month, following a drop of €1.8 billion in April, bringing the annual rate of credit growth to 0.8 per cent, the lowest on record.
Credit card repayments by Irish residents outstripped new borrowings by €23 million last month, following a trend evident since the start of the year.
The annual rate of increase in credit card indebtedness was 0.1 per cent in May, again the lowest on record.
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