Latest mortgage figures point to slowdown in mortgage activity as switching levels drop
First-time buyers now account for 62% of approval volumes, the highest share since data became available in July 2014
Note: This release was updated with revised data in June 2023
Friday 28th April 2023 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Drawdowns Report for Q1 2023 and the BPFI Mortgage Approvals Report for March 2023.
The following are the key figures from the Mortgage Drawdowns Report for Q1 2023:
- A total of 10,497 new mortgages to the value of €2,866 million were drawn down by borrowers during the first quarter of 2023.
- This represents an increase of 5.9% in volume and 14.0% in value on the corresponding first quarter of 2022.
- A comparison with the previous quarter (Q4 2022) shows a decrease of 33.9% in volume and 34.2% in value.
- First-time buyers (FTBs) remained the single largest segment by volume (50.9%) and by value (51.5%).
- Re-mortgage/switching volumes and values rose by 19.1% and 25.3% year on year respectively but fell by 53.4% and 53.7% on the previous quarter.
In addition, BPFI also published today the latest figures from the BPFI Mortgage Approvals Report for March 2023:
- A total of 4,520 mortgages were approved in March 2023 – some 2,816 were for FTBs (62.3% of total volume), while mover purchasers accounted for 974 (21.5%).
- The number of mortgages approved in March rose by 33.8% month-on-month and fell by 1.2% year-on-year.
- Mortgages approved in March 2023 were valued at €1,301 million – of which FTBs accounted for €825 million (63.4%) and €320 million by mover purchasers (24.6%).
- The value of mortgage approvals rose by 37.7% month-on-month and 7.7% year-on-year.
- Re-mortgage/switching activity fell by 54.4% year on year in volume terms and by 53.1% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI said: “Our latest mortgage figures show that in terms of mortgage drawdowns, demand remains strong with 10,497 new mortgages to the value of €2.9 billion drawn down by borrowers during the first quarter of 2023. However overall, the figures point to a continued year on year slowdown as the impetus from switching decreases. Mortgage approval volumes in March fell by 1.2% year on year while switching volumes dropped by 54.4%.”
“It is notable nonetheless, that trends in the home buyer segments remain positive. First-time buyer (FTB) drawdown volumes reached their highest Q1 level since 2007. Looking forward, FTB approval volumes rose by 16.4% year on year with FTBs accounting for 62% of approval volumes, the highest share since data became available in July 2014.”
Mr Hayes added: “We can also see that lending values continue to grow, driven by higher housing prices. At more than €293,000, the average FTB approval in March was the highest since detailed approval data became available in July 2014. Meanwhile, the average FTB drawdown on new properties and the average mover purchase drawdown on new and second-hand properties each reached the highest Q1 level at €323,743, €324,169 and €315,323, respectively, since the data series began in 2005.”
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.
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.