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BPFI Mortgage Approvals – February 2022

Strong growth in mortgage approvals in February with switching volumes jumping 42% year on year as consumers shop around

Tuesday 5th February 2022 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for February 2022. The following are the key elements:

  • A total of 3,894 mortgages were approved in February 2022 – first-time buyers (FTBs) were approved for 2,053 mortgages (52.7% of total volume) while mover purchasers accounted for 848 (21.8%).
  • The number of mortgages approved rose by 7.5% month-on-month and by 6.7% compared with the same period last year.
  • Mortgages approved in February 2022 were valued at €1,028 million – of which FTBs accounted for €546 million (53.2%) and mover purchasers for €255 million (24.8%).
  • The value of mortgage approvals rose by 10.3% month-on-month and by 13.9% year-on-year.
  • Re-mortgage/switching grew by 42.9% to 719 in volume terms year on year and by 57.3% year-on-year to €194 million over the same period.

Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest mortgage approvals data shows February was a strong month for mortgage approvals activity especially for first-time buyer approvals which grew by 4.3% in volume terms and 10.7% in value terms year on year. This all points to a continued strong pipeline for drawdown as the year progresses.”

“However, by far the fastest growing segment was re-mortgage/switching, the volume of which jumped by 42% compared to February last year. This increase in switching activity is a reflection both on the competition in the market right now and the fact that mortgage customers are actively shopping around for these better rates.”

“This comes at a time when mortgage customers are increasingly using fixed-rate mortgages.  The latest data from the CBI for example suggests that fixed rate mortgages (fixed for more than one year) accounted for almost half (46%) of outstanding mortgage value at the end of 2021, up from 25% three years earlier. With consumers keenly aware of the rising cost of living, we encourage mortgage customers to review their rate type and level regularly and compare them with the other products available.”

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, 087 9016880 or jillian.heffernan@bpfi.ie

The BPFI Mortgage Approvals Report February 2022 is available for download below in PDF format.

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