What you need to know

The COVID-19 pandemic had a severely disruptive impact on the market for loans and other forms of credit in Ireland. Not only were consumers reluctant to take out loans or avail of credit for fear of what the immediate future held, but many consumers with existing loans and credit balances were unable to meet repayments. Although the development and roll-out of the various COVID-19 vaccines has been a veritable game-changer in this regard, it will be several months before any level of normality can resume. Once it does, however, the general consensus is that the demand for loans and credit will surge.

Key issues covered in this Report

  • The impact of COVID-19 on consumer behaviour regarding loans and other forms of credit.

  • The types of loans and other credit products owned and used by Irish consumers.

  • The time and period when consumers took out their most recent loans, in addition to the value of these loans.

  • Whether or not consumers intend applying for new loans in the coming 12 months.

  • Consumers’ attitudes and behaviour when it comes to researching, arranging and managing loans.

Issues covered in this Report

This Report examines loans and other forms of credit in NI and RoI. It analyses the main factors determining supply and demand for loans and other credit products. Drawing on exclusive consumer data, it analyses levels of ownership among consumers of loans and other credit products, when consumers took out their most recent loan, the amount owed on these products, the impact of COVID-19 outbreak on loans and borrowing, future loan intentions, and attitudes and behaviour with respect to researching, arranging and managing loans.

COVID-19: market context

  • This update on the impact that COVID-19 is having on the market was prepared on 21 January 2021.

  • In RoI, the first COVID-19 cases were confirmed in February 2020, although numbers were small. The first COVID-19-related death was not recorded until 13 March 2020. RoI entered its first lockdown on 12 March.

  • The first COVID-19 cases were confirmed in the UK at the end of January 2020, with a small number of cases in February. As the case level rose, the UK government ordered the closure of non-essential stores on 20 March, which was adopted in NI and the region went into lockdown.

  • Although initial lockdowns eased during summer 2020, both NI and RoI were placed under varying degrees of tighter restrictions through the autumn months as COVID-19 cases again began to rise. As of January 2021, both NI and RoI are back in high-level lockdowns, including stringent travel restrictions. Although vaccinations have commenced both in NI and RoI, it is unlikely restrictions will be lifted to any great degree before late February at the earliest.

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