Value of mortgage approvals hit ten-year high, says BPFI

Value of mortgage

According to BPFI, just over 53,500 mortgages to the value of nearly £11.32 billion were approved in Ireland in the 12 months to the end of July

Just over 53,500 mortgages to the value of nearly €13.2 billion (£11.32 billion) were approved in Ireland in the 12 months to the end of July, according to Banking and Payments Federation Ireland (BPFI).

That represented a rise in approval volumes of just over 3% compared to the 12 months to the end of June, while the value of mortgages approved was 3.7% higher.

That is the highest level of annual approval volumes and values since the data series began around a decade ago.

The value of approvals more than doubled since the 12 months ending October 2016, driven by growth in lending to FTBs (first-time buyers) and re-mortgages or switching, Brian Hayes, CEO of Banking and Payments Federation Ireland, said.

These are significant figures and very much signal a robust pipeline for drawdown activity later in the year, he added.

A mortgage approval is an offer to a customer of a credit facility secured on a property but it does not guarantee that the mortgage will be drawn down.

The figures show that just over 5,000 mortgages were approved in the month of July alone, with first-time buyers (FTBs) again accounting for more than half of the activity.

It represented a 3.3% decline in approval volumes compared to June, but approval volumes were up over 48% when compared to last July.

Approval values were just over €1.28 billion (£1.10 billion) in the month, a rise of 0.6% on June, but it was up over 58% on July of last year.

The mortgage market was still relatively down in July of 2020 due to uncertainty caused by the pandemic which impacted the property market generally.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Getting Money Wise. The information provided on Getting Money Wise is intended for informational purposes only. Getting Money Wise is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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