Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Number of mortgages approvals rises by 50%

mortgages approvals

A total of 3,397 mortgages were approved in July, out of which FTBs were approved for 1,883 mortgages

The number of mortgages approved in July increased by over 50% compared to June according to latest figures from the Banking and Payments Federation Ireland (BPFI).

While there was a month-on-month increase the figures for July were down by 33.8% compared with July 2019. Over half of the number and value of approvals went to first-time buyers (FTB).

A total of 3,397 mortgages were approved in July — FTBs were approved for 1,883 mortgages (55% of total volume) while mover purchasers accounted for 750 (22%).

Mortgages approved in July 2020 were valued at £726.26m (€811m) — of which FTBs accounted for £413.73m (€462m) (57%), and mover purchasers for £175.52m (€196m) (24%).

Dr Ali Ugur, Chief Economist, BPFI said that with the reopening of the economy, banks have seen a significant increase in mortgage approval numbers in July compared to the previous month.

However on a year-on-year basis, approval numbers are still down which is not unexpected, she said.

On the other hand, when we look at annualised mortgage approval activity, which is a better indicator of the trend, there were 40,090 mortgage approvals in the 12 months ending July 2020, valued at £8,272m (€9,238m). Annualised mortgage approval activity to end-July 2020 decreased in volume terms by 4.1% compared with the 12 months ending June 2020 and decreased in value terms by 3.7% over the same period, she said.

The monthly report shows there were 2,713 purchase mortgage approvals (FTB, mover purchase, and residential investment letting), valued at £600.89m (€671m) in July 2020. Purchase mortgage approval activity fell in volume terms by 35.8% year-on-year and decreased in value terms by 33.2% over the same period.

Mortgage approvals reached 3,733 in March before falling to 2,200 in April and then 1,879 in May as the impact of the Covid-19 restrictions took hold.

In response to the impact of Covid-19, retail banks in Ireland have provided over 70,000 mortgage payment breaks.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.