First-time buyer mortgage approvals remain robust despite continued wider market slowdown, according to latest figures from BPFI
- Mover purchase approval volumes fall to lowest January level since 2016, as supply of secondhand homes declines
Friday 1st March 2024 – Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for January 2024. The following are the key elements:
- A total of 3,262 mortgages were approved in January 2024 – first-time buyers (FTBs) were approved for 1,991 mortgages (61.0% of total volume) while mover purchasers accounted for 680 (20.8%).
- The number of mortgages approved rose by 16.8% month-on-month and fell by 11.8% compared with the same period last year.
- Mortgages approved in January were valued at €919 million – of which FTBs accounted for €577 million (62.8%) and mover purchasers for €227 million (24.7%).
- The value of mortgage approvals rose by 15.1% month-on-month and fell by 9.4% year-on-year.
- Re-mortgage/switching activity fell by 49.6% in volume terms year-on-year and by 56.0% in value in the same period.
Speaking on the publication of the data, Ali Uğur, Chief Economist, BPFI stated: “Our latest mortgage approval figures for January 2024, show a continued slowdown across almost all customer segments with the exception of FTB approvals which continue to remain robust, increasing by 4.7% year on year in volume to 1,991 and by 10.2% in value to €577 million. These are the highest January FTB volumes and values since the data series began in 2011. The average FTB mortgage approval value has also risen by €14,519 over twelve months to €289,971 as housing prices continue to rise.”
Mr Uğur, continued: “However, it is concerning to see continued decline in mover purchase approvals, which reached their lowest January volumes since 2016. Movers play an important role in housing by bringing secondhand homes to the market but in recent years we have seen a decline in the number of properties being advertised for sale and much of that secondhand supply has come from investors selling up. While we traditionally focus on the supply of newly built homes, with demand for housing so strong, we need the secondhand home supply to increase as well.”
The BPFI Mortgage Approval Report January 2024 is available here.
The BPFI Mortgage Approvals report data series since January 2011 is available to download here.
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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 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 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.
