First-time buyers continue to buck declining trend in mortgage approvals to reach record highs
Annualised FTB approvals surpassed €8 billion for the first time since the data series began in 2011
Tuesday 27th June 2023 – Banking & Payments Federation Ireland (BPFI) has today published the latest
figures from the BPFI Mortgage Approvals Report for May 2023. The following are the key elements:
- A total of 4,928 mortgages were approved in May 2023 – first-time buyers (FTBs) were approved for 3,170 mortgages (64.3% of total volume) while mover purchasers accounted for 1,033 (21%).
- The number of mortgages approved rose by 26.4% month-on-month and fell by 8% compared with the same period last year.
- Mortgages approved in May were valued at €1,396 million – of which FTBs accounted for €926 million (66.3%) and mover purchasers for €333 million (23.9%).
- The value of mortgage approvals rose by 25.1% month-on-month and fell by 4% year-on-year.
- Re-mortgage/switching activity fell by 72% in volume terms year-on-year and by 72.8% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest mortgage approval figures show that, while total volumes fell by 8% in May, first-time buyers (FTBs) continued to buck the declining trend, with FTB volumes increasing by 20.1% year-on-year to 3,170. The share of FTB mortgage approvals have now increased to 64.3% of volumes.”
“In value terms, FTB approvals rose by 26.4% year-on-year to €926 million which meant that the annualised value of FTB approvals surpassed €8 billion for the first time since the data series began in 2011, at €8,063 million. Indeed, May was the busiest month for FTB approvals in both volume and value terms since the data series began. This represents a very strong pipeline for FTB drawdowns later in the year.”
“By contrast, mover purchase volumes have fallen year-on-year in 16 out of the past 19 months, accounting for 21% of total mortgage approvals in May at 1,033. Our May figures also show that switching activity continued its decline with a 72% drop in approval volumes year-on-year to 346.”
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.