BPFI Mortgage Approvals Report April 2020

Mortgage approvals down over 40% in April as impact of COVID-19 takes effect

Lenders continue to approve new mortgages with 2,200 mortgages to the value of €525m approved in April

Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for April 2020. The following are the key elements:

  • A total of 2,200 mortgages were approved in April 2020 – some 1,034 were for FTBs (47% of total volume) while mover purchasers accounted for 528 (24%).
  • The number of mortgages approved fell by 41.1% month-on-month and fell by 46.5% compared with the same period last year.
  • Mortgages approved in April 2020 were valued at €525 million – of which FTBs accounted for €256 million (48.8%) and €135 million by mover purchasers (25.7%).
  • The value of mortgage approvals fell by 40.3% month-on-month fell by 43.6% year-on-year.

Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI said: “As expected we have seen a significant drop off in activity in the mortgage market in April as the medium term impact of COVID-19 takes effect. And in the current conditions it is likely that we will see a similar fall in mortgage drawdowns for this quarter as they follow the downward trend shown in today figures.

The BPFI CEO said: “Looking ahead there is no doubt that the period ahead will remain challenging for the mortgage market and the housing market as a whole as the current economic uncertainty continues. And during this period it will be necessary for both lenders and borrowers to take a realistic and pragmatic approach given the change in individuals’ financial and employment circumstances. This is ultimately in the best interest of the customer and to ensure that borrowers can afford the loans they take out.”

“However, it is equally important to note today that despite the challenges during these unprecedented times, both economically and due to physical restrictions, 2,200 mortgages to the value of €525 million were approved by lenders here during April. This highlights the fact that lenders are continuing to approve new applications and that would-be borrowers should actively proceed with mortgage applications where income and employment circumstances have not been impacted by the current pandemic and where they meet the normal lending criteria ”, said Mr. Hayes.

“If customers have any questions in relation to the impact of COVID on their mortgage application we would encourage them to talk to their lender or go to the BPFI website where they will find a detailed COVID-19 FAQ guide on mortgages which is available here”, concluded Mr. Hayes.

The BPFI Mortgage Approval Reports April 2020 can be viewed on the BPFI website 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 April 2020 is available for download below in PDF format.