First time buyers continue to drive mortgage approvals
Just over 5,300 mortgages were approved in July, the latest figures from Banking and Payments Federation Ireland show.
First time buyers continue to drive the bulk of the activity, accounting for almost two thirds – 61.9% – of all approvals in the month.
Just under a quarter of approvals were granted to those looking to move house.
Remortgaging and switching activity increased significantly in the month, both in volume and value terms, albeit from very low levels.
The rates of switching and remortgaging dropped substantially in the last year following a surge in activity as the European Central Bank moved to raise interest rates in mid-2022.
The total mortgages of mortgages approved in July amounted to €1.61 billion of which first time buyers accounted for just over €1 billion.
That was an increase of just over 20% month on month and around 19% on the same month last year.
“First-time buyers approval volumes and values reached their highest levels since the series began in 2014, up 12.8% and 21% respectively,” Brian Hayes, CEO of the Banking and Payments Federation said.
“Values topped €1 billion (€1,012 million) for the first time in a one-month period,” he noted.
Mr Hayes said the report pointed to robust mortgage activity overall.
49,384 mortgage approvals were granted in the twelve months ending July 2024, of which 30,550 were first time mortgages.
“Furthermore, applications to the Revenue Commissioners for the Help to Buy scheme increased by 45% year on year in the first seven months of 2024 to almost 24,000 (23,902),” he pointed out.
Article Source – First time buyers continue to drive mortgage approvals – RTE
