September 28, 2021

MP Now News

Mortgage News

Mortgage approval values at a ten-year high in July

According to the Banking and Payments Federation Ireland, just over 53,500 mortgages worth nearly € 13.2 billion were approved in Ireland in the twelve months to the end of July.

This corresponds to an increase in the approval volume of a good 3% compared to the 12 months at the end of June, while the value of the approved mortgages was 3.7% higher.

These are the highest annual approval quantities and values ​​since the data series began around a decade ago.

“The value of approvals has more than doubled from the twelve months to October 2016, driven by growth in lending to FTBs (first-time buyers) and debt restructuring,” said Brian Hayes, CEO of Banking and Payments Federation Ireland.

“These are significant numbers and signal a robust pipeline for drawdown activity later in the year,” he added.

A mortgage approval is an offer to a customer of a line of credit secured on a property, but does not guarantee that the mortgage will be used.

Just over 5,000 mortgages were approved in July alone, as the figures show, with first-time buyers again accounting for more than half of the activities.

Compared to June this meant a 3.3% decrease in the approval volume, but compared to last July the approval volume increased by over 48%.

The approval values ​​for the month were just over € 1.28 billion, an increase of 0.6% compared to June, but compared to July of the previous year by over 58%.

The mortgage market was still relatively depressed in July 2020 due to the uncertainty about the course of the pandemic affecting the real estate market in general.

“July mortgage approvals show continued growth, particularly for FTB (first-time) mortgages. In total, nearly $ 1.3 billion in mortgage approvals, most since BPFI began collecting this data in 2011,” said Hayes .