BPFI Mortgage Approvals June 2021

Latest mortgage data from BPFI shows strong growth in mortgage drawdowns and approvals

27 July 2021 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Drawdowns Report for Q2 2021 and the BPFI Mortgage Approvals Report for June 2021.

The following are the key figures from the Mortgage Drawdowns Report for Q2 2021. The following are the key elements:

  • A total of 9,625 new mortgages to the value of €2,230 million were drawn down by borrowers during the second quarter of 2021
  • This represents an increase of 45.4% in volume and 52.5% in value on the corresponding second quarter of 2020. 
  • A comparison with the previous quarter (Q1 2021) shows an increase of 5.9% in volume and 4.1% in value.
  • First-time buyers (FTBs) remained the single largest segment by volume (50.9%) and by value (51.2%). 
  • New properties (including self-builds) accounted for 27.8% of property purchase/build mortgages in Q2 2021, down from 29.1% in Q2 2020.

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

  • A total of 5,203 mortgages were approved in June 2021 – some 2,755 were for FTBs (53%) of total volume) while mover purchasers accounted for 1,273 (24.5%).
  • The number of mortgages approved in June rose by 11.1% month-on-month and by 129.9% year-on-year.
  • Mortgages approved in June 2021 were valued at €1,276 million – of which FTBs accounted for €691 million (54.2%) and €357 million by mover purchasers (28%).
  • The value of mortgage approvals rose by 10% month-on-month and by 138% year-on-year.

Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI said: “Our latest mortgage drawdowns and approvals data for Q2 2021 is showing continued strong growth in both mortgage approvals and drawdowns. However it is important when we draw year on year comparisons that we note the difficulties experienced in the mortgage market during the same period in 2020.  The strong growth figures do however show a strong pipeline for future demand as we move into the latter part of the year.”

Mr Hayes continued: “Interestingly, where we can see the impact of Covid restrictions is on the types of properties on which mortgages are being drawn down, with new properties (including self-builds) accounting for only 27.8% of property purchase/build mortgages in Q2 2021, down from 29.1% a year earlier.”

“Looking more in-depth we can see the number of mortgage drawdowns on new properties grew 40.9% year on year in Q2 2021. Mortgage drawdowns on second-hand properties however grew faster at 50.6% by volume and 65.2% by value. The value of FTB and mover purchase mortgages on secondhand properties both reached their highest Q2 levels since 2008. This underlines the severe limitations we have seen on the construction industry during the pandemic which is having a clear impact on supply. With all residential construction now underway again the challenge remains how to satisfy the strong demand for housing, clearly evident in today’s figures, with the continued pressure which has been growing on supply.”

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

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