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BPFI Mortgage Approvals – December 2021

Niall Faherty

Almost €10.5 billion worth of mortgage drawdowns in 2021, the most since 2008

  • A total of 43,494 mortgages to a value of €10.5 billion were drawn down in 2021
  • A total of 53,335 mortgages to the value of €13.4 billion were approved in 2021

Wednesday 26th January 2022 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Drawdowns Report for Q4 2021 and the BPFI Mortgage Approvals Report for December 2021.

The following are the key figures from the Mortgage Drawdowns Report for Q4 2021.

  • A total of 13,299 new mortgages to the value of €3,312 million were drawn down by borrowers during the fourth quarter of 2021.
  • This represents an increase of 9.4% in volume and 12.3% in value on the corresponding fourth quarter of 2020. 
  • A comparison with the previous quarter (Q3 2021) shows an increase of 15.9% in volume and 19% in value.
  • First-time buyers (FTBs) remained the single largest segment by volume (54.4%) and by value (54.2%). 
  • In total, 43,494 mortgages to a value of €10.5 billion were drawn down in 2021.  These were the highest volumes since 2009 and the highest values since 2008.

In addition, BPFI also published today the latest figures from the BPFI Mortgage Approvals Report for December 2021:

  • A total of 3,856 mortgages were approved in December 2021 – some 2,096 were for FTBs (54.4%) of total volume) while mover purchasers accounted for 891 (23.1%).
  • The number of mortgages approved in December fell by 22.2% month-on-month and by 3.6% year-on-year.
  • Mortgages approved in December 2021 were valued at €1,011 million – of which FTBs accounted for €550 million (54.4%) and €274 million by mover purchasers (27.1%).
  • The value of mortgage approvals fell by 21.2% month-on-month but rose by 3.3% year-on-year.
  • During 2021 a total of 53,335 mortgages were approved to the value of €13.4 billion.

Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI said: “Our latest mortgage data which provides an annual picture for 2021, shows significant numbers of both drawdowns and approvals and a particularly strong year for First Time Buyers.”

“Drawdown volumes rose by 22.1% to 43,494 while values rose by 25.1% to almost €10.5 billion.  These were the highest volumes since 2009 and the highest values since 2008. At a segment level, FTBs continue to drive the growth with FTB volumes at their highest level since 2007 and 14.8% higher than in 2008. By contrast, mover purchase volumes were 48.2% lower than in 2008.”

“In annual terms, approvals volumes reached 53,335 in 2021, up 23.6% on 2020. The value of approvals jumped by 30% to €13.4 billion. These are the highest levels recorded since the data series began in 2011.”

Mr Hayes added: “Looking to the year ahead we anticipate a strong pipeline of mortgage approvals which will be further bolstered by the recent operational flexibility announced to the CBI’s macroprudential rules. With an increase in housing supply also projected we expect all these factors combined to lead to strong activity in the housing and mortgage markets during 2022.”

Data Series

All mortgage approvals data from January 2011 onwards is available in Microsoft Excel format (*.xls) in the BPFI Mortgage Approvals report data series. The BPFI Mortgage Approvals report data series since January 2011 is available to download here.

Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland.  Together with its affiliates, the Federation of International Banks in Ireland and the Fintech & Payments Association of Ireland, BPFI has 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, jillian.heffernan@bpfi.ie 087 9016880

The BPFI Mortgage Approvals Report December 2021 is available for download below in PDF format.

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