First-time buyer mortgage activity reached historic highs in 12 months to end of November, despite overall slowdown – latest BPFI figures
- The total number and value of mortgages approved fell by 22.7% and 19.4% year on year, largely driven by lower switching levels
- Average FTB mortgage value reached €294,836, some €19,000 higher than November 2022
Tuesday 9th January 2024 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for November 2023. The following are the key elements:
- A total of 4,202 mortgages were approved in November 2023 – first-time buyers (FTBs) were approved for 2,575 mortgages (61.3% of total volume) while mover purchasers accounted for 959 (22.8%).
- The number of mortgages approved fell by 1.7% month-on-month and fell by 22.7% compared with the same period last year.
- Mortgages approved in November were valued at €1,208 million – of which FTBs accounted for €759 million (62.9%) and mover purchasers for €317 million (26.2%).
- The value of mortgage approvals fell by 0.5% month-on-month and fell by 19.4% year-on-year.
- Re-mortgage/switching activity fell by 75.0% in volume terms year-on-year and by 77.6% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest figures reveal that mortgage approvals for first-time buyers (FTBs) reached historic highs once again with 30,550 FTB mortgages valued at more than €8.8 billion (€8,806 million) approved in the twelve months ending November 2023, the highest volume and value since the series began in 2010. This reflects sustained upward FTB trends throughout most of 2023, although we may be starting to see moderation in the growth of FTB approvals with the year-on-year increase in FTB volumes up by just 1.7%. However, the values of FTB approvals rose by 8.6% reflecting higher housing prices as the average FTB mortgage value reached €294,836, some €19,000 more than in November 2022 (€275,957) and the second highest value recorded since our data series began.”
Mr Hayes continued: “Notwithstanding strong FTB activity, we continue to see an overall slowdown in activity with the total number and value of mortgages approved in November 2023 having fallen by 22.7% and 19.4% year on year, largely driven by lower switching levels. However, mortgage activity has remained very strong in the past year with 50,470 mortgages valued at almost €14.4 billion approved in the twelve months ending November.”
The BPFI Mortgage Approval Report November 2023 is available here.
The BPFI Mortgage Approvals report data series since January 2011 is available to download here.
ENDS/
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 over 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Fiona Murphy, Head of Communications, 087 9740046, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, 087 9016880, jillian.heffernan@bpfi.ie.
