Mortgage drawdowns continued to grow in Q3 2024, driven by strong first-time buyer activity and an increase in mortgage switching
- Over 7,000 FTB mortgages drawn down in Q3 2024 valued at almost €2.1 billion
- Drawdowns for mortgage switching increased year on year in both volume (26.1%) and value (28.0%) for the first time since Q1 2023
Friday 25th October 2024 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Drawdowns Report for Q3 2024 and the BPFI Mortgage Approvals Report for September 2024.
The following are the key figures from the Mortgage Drawdowns Report for Q3 2024:
- A total of 11,774 new mortgages to the value of €3,407 million were drawn down by borrowers during the third quarter of 2024.
- This represents an increase of 1.4% in volume and 7.4% in value on the corresponding third quarter of 2023.
- A comparison with the previous quarter (Q2 2024) shows an increase of 16.5% in volume and 19.4% in value.
- First-time buyers (FTBs) remained the single largest segment by volume (59.8%) and by value (61.4%).
- Re-mortgage/switching volumes and values rose by 26.1% and 28.0% year on year respectively.
In addition, BPFI also published today the latest figures from the BPFI Mortgage Approvals Report for September 2024:
- A total of 4,445 mortgages were approved in September 2024 – some 2,631 were for FTBs (59.2% of total volume), while mover purchasers accounted for 1,019 (22.9%).
- The number of mortgages approved in September fell by 4.4% month-on-month and rose by 6.8% year-on-year.
- Mortgages approved in September 2024 were valued at €1,328 million – of which FTBs accounted for €812 million (61.2%) and €352 million by mover purchasers (26.5%).
- The value of mortgage approvals fell by 5.1% month-on-month and rose by 12.4% year-on-year.
- Re-mortgage/switching activity rose by 19.1% year-on-year in volume terms and by 26.1% in value in the same period.
Speaking on the publication of the reports, Brian Hayes, Chief Executive, BPFI said: “Our latest mortgage data shows that drawdown volumes continued to grow in Q3 2024, albeit at a slower rate, increasing by 1.4% year on year. This growth was mainly driven by high FTB volumes, which comprised almost 60% (59.8%) of all drawdown volumes, as well as rising switching volumes, up 26.1% compared to the same quarter last year. In fact, switching increased in both volume and value terms for the first time since Q1 2023.”
Reflecting on property types, Mr. Hayes continued: “Home mortgage drawdown volumes on new properties (including self-builds) increased by 14.7% year on year in Q3 2024 with more than 3,000 mortgages on new properties, the highest third quarter level since Q3 2008. This increase was driven mainly by an increase in FTB mortgages on new properties which rose by 18.8% to 2,489, signalling continued momentum in new home building.”
“Meanwhile, looking at the latest mortgage approval figures for September, approvals increased across all customer segments when compared to the previous year, most notably in switching, which was up by 19.1% in volume terms. In annual terms 49,784 mortgages were approved. FTB volumes also remained high with 30,673 FTB mortgages approved over the past 12 months to September 2024, the third highest annualised level since the series began in 2011.”
Mr Hayes concluded: “Overall, mortgage demand remains robust with approvals indicating a strong pipeline for FTB drawdowns in particular, in the fourth quarter of 2024 and early 2025.”
The BPFI Mortgage Drawdowns Q3 2024 report is available to download here.
The BPFI Mortgage Approvals September 2024 report is available to download here.
Ends/
Data Series:
Mortgage drawdown data from Q1 2005 onwards is available in Microsoft Excel XLS format in the BPFI Mortgage Drawdowns report data series. Download the BPFI Mortgage Drawdowns Report time series here.
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 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 over 110 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
For information contact: Fiona Murphy, Head of Communications, fiona.murphy@bpfi.ie 087 9740046 or Jillian Heffernan, Director of Communications, jillian.heffernan@bpfi.ie 087 9016880.
