First-time buyer mortgage approvals reached new highs in the year to the end of October despite a wider market slowdown, according to the latest figures from the Banking & Payments Federation Ireland (BPFI).
Their latest Mortgage Approvals report found that the total number of mortgages approved fell by 20.1% year-on-year, while the value dropped by 16.9%, with the trend driven mainly by lower switching levels.
However, average first-time buyer mortgage values reached €295,033 – some €27,000 more than in October 2022, reflecting higher house prices.
A total of 4,273 mortgages were approved in October 2023. First-time buyers (FTBs) were approved for 2,687 mortgages (62.9% of total volume) while mover purchasers accounted for 926 (21.7%).
The number of mortgages approved rose by 2.7% month-on-month and fell by 20.1% compared with the same period last year.
Mortgages approved in October were valued at €1,214 million – of which FTBs accounted for €793 million (65.3%) and mover purchasers for €291 million (23.9%).
The value of mortgage approvals rose by 2.7% month-on-month and fell by 16.9% year-on-year.
Re-mortgage/switching activity fell by 78.3% in volume terms year-on-year and by 81.5% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest figures show continued growth in mortgage approvals for first-time buyers (FTBs), with the number of mortgage approvals for FTBs buying or building their own homes rising to a record level of 30,508 in the 12 months to the end of October, while the value of those approvals rose to more than €8.7 billion. While we continue to see an overall slowdown in mortgage activity year on year in both volume and value terms – a decrease of 20.1% and 16.9% respectively mainly driven by lower switching levels – FTBs continue to defy the overall trend with FTB volumes and values having grown in nine out of the ten months of 2023 (with the exception of February).
“The average FTB mortgage value also reached a new high of €295,033, some €27,000 more than in October 2022 (€268,012), reflecting higher housing prices.”
Mr Hayes concluded: “Looking ahead, while the pipeline for drawdowns remains solid to the end of 2023, continued supply of new and secondhand housing will be needed to meet robust demand in 2024.”
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