There has been a significant increase in mortgage approvals, according to a new report from Banking & Payments Federation Ireland (BPFI).
The latest Mortgage Approvals Report for February 2022 also revealed that there has been a major spike in mortgage switching recorded.
The report found that in February 3,894 mortgages were approved including 2,053 mortgages for first-time buyers (FTBs), while mover purchasers accounted for 848.
According to the BPFI figures, the number of mortgages approved rose by 7.5 per cent month-on-month and by 6.7 per cent compared with the same period last year.
The value of mortgage approvals rose by 10.3 per cent month-on-month and by 13.9 per cent year-on-year.
Speaking about the report, Brian Hayes, chief executive, BPFI said: “Our latest mortgage approvals data shows February was a strong month for mortgage approvals activity especially for first-time buyer approvals which grew by 4.3 per cent in volume terms and 10.7 per cent in value terms year-on-year.
“This all points to a continued strong pipeline for drawdown as the year progresses.”
The report also shows a 42 per cent volume increase in re-mortgage/switching.
“This increase in switching activity is a reflection both on the competition in the market right now and the fact that mortgage customers are actively shopping around for these better rates,” Mr Hayes explained.
“This comes at a time when mortgage customers are increasingly using fixed-rate mortgages.
“The latest data from the CBI for example suggests that fixed rate mortgages (fixed for more than one year) accounted for almost half (46 per cent) of outstanding mortgage value at the end of 2021, up from 25 per cent three years earlier.
“With consumers keenly aware of the rising cost of living, we encourage mortgage customers to review their rate type and level regularly and compare them with the other products available.”