September 17, 2021

MP Now News

Mortgage News

Mortgage approvals and drawdowns continue to rise

The number of approved and drawn mortgages continues to grow, according to the latest figures from the Banking and Payment Federation Ireland.

In June 5,203 mortgages were approved, an increase of over 11% compared to the previous month and an increase of almost 130% compared to the same month last year.

First time buyers (FTBs) were approved for 53% of the total volume of these new mortgages, while relocation buyers accounted for just over 24%.

Today’s figures also show that mortgages approved in June 2021 were worth 1.276 billion euros, 10% more than the previous month and 138% more than in June 2020.

The numbers from BPFI also show an increase in the number of new mortgage loans taken out in the second quarter.

During this period, 9,625 new mortgages with a value of € 2.2 billion were used, 45% more volume and 52% more than in the previous year.

Compared to the previous quarter, this corresponds to an increase in volume of 5.9% and an increase in value of 4.1%.

The figures show that first-time buyers remained the largest single segment by volume with 50.9% and by value with 51.2%.

In the second quarter of the year, new properties, including self-construction, accounted for 27.8% of home purchases or construction mortgages, up from 29.1% in the same quarter of 2020.

The figures show that the value of FTB and mover buy mortgages on used real estate reached its highest level in the second quarter since 2008.

Brian Hayes, chief executive of BPFI, said the impact of Covid-19 restrictions could be seen on the types of properties that mortgages could be drawn on.

“We see that the number of new home mortgages taken in the second quarter of the year increased 40.9% year over year.

“However, mortgage claims for used properties grew faster by 50.6% in terms of volume and 65.2% in terms of value,” he emphasized.

Mr Hayes said this underscores the restrictions we saw in the construction industry during the pandemic, which is clearly affecting supply.

“With residential construction now back in full swing, the challenge remains to meet the strong demand for housing, which is clearly evident in today’s figures, while supply pressure continues,” he said.