The number of mortgage approvals fell in February for the first time in seven years.
The latest figures from the Banking & Payments Federation Ireland (BPFI) show that a total of 3,378 mortgages were approved in February 2023.
First-time buyers (FTBs) were approved for 1,877 mortgages (55.6% of total volume) while mover purchasers accounted for 801 (23.7%).
This was down 8.6% from the previous month and by 13.3% compared with the same period last year, while the value of mortgages was also down, by 6.9% on January's figures and by 8.1% compared to February 2022.
The previous fall in 2016 was prompted by the introduction of the Central Bank’s lending limits.
Of the €945 million approved in mortgages last month, 55.9% was for FTBs (€528 million) and 27.9% (€263 million) for movers.
Non-purchase activity, such as mortgage switching or top-ups, also fell 30.9% in terms of volume on the same period last year, and by 32.6% (€144 million) in terms of value.
"While our latest figures show a slowdown in approvals across almost all customer segments in volume and value terms, it is important that we look at this in the context of the significant decline we are seeing in switching activity," BPFI's chief executive Brian Hayes said.
"In February, non-purchase mortgage approvals, mainly made up of switching, fell by almost 31 per cent in volume terms year-on-year and this decline has had an impact on the overall slowdown we have seen in this month’s figures.
"This fall off was expected given the substantial wave of switching undertaken by customers in recent months with almost €4.3 billion in new non-purchase approvals (mainly switching) in the twelve months ending January 2023."
Mr Hayes added that despite last month's slowdown, mortgage activity remains at "historically high levels", and demand remains particularly strong among FTBs.
