Vol­ume of mort­gage ap­provals fall

The Irish Times - Business - - BUSINESS NEWS - PETER HAMIL­TON

The vol­ume of mort­gage ap­provals fell in Novem­ber com­pared to the pre­vi­ous month with first-time buy­ers and movers re­ceiv­ing fewer of­fers of credit from lenders. The value of the mort­gages ap­proved also fell.

Data from the Bank­ing and Pay­ments Fed­er­a­tion Ire­land (BPFI) shows that ap­provals fell, buck­ing a trend in the pre­vi­ous two years whereby ap­provals rose in Novem­ber. How­ever, the BPFI cau­tioned about mak­ing as­sump­tions on monthly data as it can be volatile.

In any event the 4,102 ap­provals, val­ued at €896 mil­lion, means ac­tiv­ity in­creased by 4.5 per cent in vol­ume terms com­pared to Novem­ber 2017 and in­creased 3.3 per cent in value.

First-time buy­ers

First-time buy­ers (FTBs) ac­counted for al­most half of the value and vol­ume of ap­provals with more than 1,900 mort­gages ap­proved with a value of €438 mil­lion. Mover pur­chasers, mean­while, ac­counted for 27 per cent of the vol­ume of mort­gages.

“Over­all the lat­est fig­ures con­tinue to con­firm the pre­dom­i­nance of FTBs in the mort­gage mar­ket where they ac­count for close to half of all ap­proval ac­tiv­ity,” said Felix O’Re­gan, BPFI’s di­rec­tor of pub­lic af­fairs.

There was sig­nif­i­cant growth in the re­mort­gag­ing and switch­ing sec­tor of the mar­ket with 33 per cent more mort­gage ap­provals in the 12-month pe­riod.

Pre­vi­ous month

The fig­ures show the av­er­age mort­gage ap­poved in Novem­ber was €218,430 , slightly higher than the pre­vi­ous month. How­ever, that fig­ure is down on the May 2018 high of €226,622 – the largest av­er­age fig­ure since the BPFI started re­leas­ing data in 2011.

In the 12 months to the end of Novem­ber there were al­most 45,500 mort­gage ap­provals val­ued at more than €10 bil­lion across a raft of lenders ac­tive in the Ir­ish mar­ket.

The BPFI rep­re­sents more than 70 in­sti­tu­tions in the fi­nan­cial in­dus­try in Ire­land. The group re­ports mort­gage ap­proval fig­ures on a monthly ba­sis us­ing data supplied by lend­ing in­sti­tu­tions.

The fig­ures show the av­er­age mort­gage ap­poved in Novem­ber was €218,430

Source: Bank­ing & Pay­ments Fed­er­a­tion Ire­land

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