There were 4,683 mortgage approvals valued at £1.03 billion, according to figures from BPFI
The volume as well as the value of approved mortgages in May rose sharply when compared with the same period last year, according to figures from Ireland’s Banking and Payments Federation (BPFI).
There were 4,683 mortgage approvals valued at €1.2 billion (£1.03 billion), the figures show. Mortgage approval activity rose in volume terms by 149.2 per cent year on year (YOY) and by 162.5 per cent in value terms over the same period.
The rise can be explained by a significant drop-off in mortgage activity last year while the country was in the grip of the Covid-19 crisis.
There were 3,814 residential purchase mortgage approvals, which was up 188.9 per cent, valued at €986 million (£847.17 million) in May. These approvals increased in volume terms by 188.9 per cent year on year and by 204 per cent in value terms over the same period.
First-time buyer (FTB) mortgage approval volumes rose by 202.8 per cent year on year to 2,580, while mover purchase approval volumes rose by 162.3 per cent to 1,112.
The value of FTB mortgage approvals rose by 220.7 per cent year on year to €643 million (£552.47 million), while the value of mover purchase approvals rose by 175.4 per cent to €325 million (£279.24 million).
There were 48,935 mortgage approvals in the year to the end of May 2021, valued at €12 billion (£10.31 billion).
Annualised mortgage approval activity to the end of May rose in volume terms by 6 per cent compared with the 12 months ending April 2021 and rose by 6.4 per cent in value terms.
Annualised purchase mortgage approval volumes rose by 6.6 per cent compared with the prior period to 40,098 in the 12 months ending May 2021, while the annualised value of purchase mortgage approvals was €1.2 billion (£1.03 billion), up by 7 per cent over the same period.
BPFI chief executive Brian Hayes said May had proven to be yet another very strong month for mortgage approvals activity, especially for first-time-buyers. It is important we view these figures in the context of how the country was operating in May 2021 compared to 12 months earlier.
Mr Hayes noted that in the 12 months ending May 2021, more loans were approved for home buyers/builders than in any 12-month period since the data series began in 2011 at 38,882.
In value terms, approvals for home buyers/building neared €10 billion (£8.59 billion) for the first time. These are significant figures and very much signal a robust pipeline for drawdown activity later in the year, he said.