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BPFI Mortgage Drawdowns – Q2 2022

Niall Faherty

Solid growth in homebuyer mortgage drawdowns in Q2 2022 with good pipeline of approvals driven by switchers

Average FTB mortgage drawdown hits €263,312, the highest level since the data series began

Tuesday 26th July 2022 – Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Drawdowns Report for Q2 2022 and the BPFI Mortgage Approvals Report for June 2022.

Both reports show growth in mortgage activity up to June 2022 and highlight the increasing prominence of switching and the impact of rising housing prices on average loan values.

Drawdowns rose by 24.5% in volume terms and by 40.6% in value terms in Q2 2022. First-time buyers drew down almost 6,000 mortgages, up 22.5% year on year. The average FTB mortgage drawdown rose by 13% year on year to €263,312, the highest level since the data series began in 2003. The previous record was €251,831 in Q1 2008.

Switcher mortgage volumes grew by 74.3% year on year to more than 2,600 mortgages.

Both FTB and switcher mortgages reached their highest Q2 levels in value terms since 2007.

Using mortgage approvals as a leading indicator, switching is emerging as the key driver in mortgage market growth, with approval volumes up by 153% year on year in June 2022 to 1,789. On an annualised basis, the number of re-mortgage/switching loans more than doubled between June 2018 and June 2022 to 9,824. Boosted by increased switching activity the number of mortgage approvals in the twelve months ending June 2022 reached 55,467, the highest level recorded since the data series began in 2011.

The following are the key figures from the Mortgage Drawdowns Report for Q2 2022.

  • A total of 11,985 new mortgages to the value of €3,134 million were drawn down by borrowers during the second quarter of 2022.
  • This represents an increase of 24.5% in volume and 40.6% in value on the corresponding second quarter of 2021.
  • FTBs remained the single largest segment by volume (50%) and by value (50.4%).
  • The average FTB mortgage drawdown rose by 13% year on year to €263,312, the highest level since the data series began in 2003. The previous record was €251,831 in Q1 2008.

In addition, BPFI also published today the latest figures from the BPFI Mortgage Approvals Report for June 2022:

  • A total of 5,960 mortgages were approved in June 2022 – some 2,675 were for FTBs (44.9%) of total volume) while mover purchasers accounted for 1,185 (19.9%).
  • The number of mortgages approved in June rose by 11.3% month-on-month and by 14.5% yearon-year.
  • Mortgages approved in June 2022 were valued at €1,666 million – of which FTBs accounted for €737 million (44.2%) and €401 million by mover purchasers (24.1%).
  • The value of mortgage approvals rose by 14.6% month-on-month and by 30.6% year-on-year.

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 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

The BPFI Mortgage Drawdowns Report Q2 2022 is available for download below in PDF format.

The Download BPFI Mortgage Drawdowns Report Q2 2022 is available for download below in PDF format.

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