First-time buyer mortgage approval activity reached new highs in 12 months to end of October, amid wider market slowdown – latest BPFI figures
- The total number and value of mortgages approved fell by 20.1% and 16.9% year on year, mainly driven by lower switching levels
- Average FTB mortgage value reached €295,033, some €27,000 more than in October 2022, reflecting higher house prices
Friday 24th November 2023 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for October 2023. The following are the key elements:
- A total of 4,273 mortgages were approved in October 2023 – first-time buyers (FTBs) were approved for 2,687 mortgages (62.9% of total volume) while mover purchasers accounted for 926 (21.7%).
- The number of mortgages approved rose by 2.7% month-on-month and fell by 20.1% compared with the same period last year.
- Mortgages approved in October were valued at €1,214 million – of which FTBs accounted for €793 million (65.3%) and mover purchasers for €291 million (23.9%).
- The value of mortgage approvals rose by 2.7% month-on-month and fell by 16.9% year-on-year.
- Re-mortgage/switching activity fell by 78.3% in volume terms year-on-year and by 81.5% in value in the same period.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI stated: “Our latest figures show continued growth in mortgage approvals for first-time buyers (FTBs), with the number of mortgage approvals for FTBs buying or building their own homes rising to a record level of 30,508 in the 12 months to the end of October, while the value of those approvals rose to more than €8.7 billion. While we continue to see an overall slowdown in mortgage activity year on year in both volume and value terms – a decrease of 20.1% and 16.9% respectively mainly driven by lower switching levels – FTBs continue to defy the overall trend with FTB volumes and values having grown in nine out of the ten months of 2023 (with the exception of February).”
“The average FTB mortgage value also reached a new high of €295,033, some €27,000 more than in October 2022 (€268,012), reflecting higher housing prices.”
Mr Hayes concluded: “Looking ahead, while the pipeline for drawdowns remains solid to the end of 2023, continued supply of new and secondhand housing will be needed to meet robust demand in 2024.”
Data Series
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 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.
