- Mortgage approvals up 27% overall on last year
- Approvals for house purchase up 37%
A new data series which tracks mortgage approvals shows that a total of 1,677 mortgages were approved by lenders here during the month of October. This represents an increase of some 27% (26.9%) compared to the same month in 2011 and an increase of 10.3% over the previous month of September.
This overall number is made up almost entirely of mortgage approvals for house purchase (1,565), which increased year-on-year by 37.3%; the much lower number of approvals for re-mortgages and top ups (112) actually declined over the same period. The average mortgage approval value for purposes of house purchase stands at €174,677 – down by 3% year-on-year.
Data collection for this IBF Mortgage Approvals Report began in August 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. It will be published monthly.
Commenting on the data, IBF’s Director of Public Affairs, Felix O’Regan, stated:
“This new IBF Mortgage Approvals Report provides an important lead indicator of future mortgage market activity. The significant uplift it shows in the level of mortgage approvals is further welcome evidence of renewed activity, coming as it does on the heels of figures we published earlier this month which confirmed the first year-on-year increase since 2006 in the number of new mortgages actually drawn down. Since the majority of approvals usually lead to draw downs, the level of approvals in October suggests that the drawdown figures for Q4 2012 when published in the new year could show some further growth in the market; however, the level of approvals for November and December will need to be seen before a more definitive judgement can be made. The availability of mortgage interest relief is seen as a contributory factor and it remains to be seen what effect its abolition after 31st December will have.”
The IBF Mortgage Approvals Report can be viewed on the web here.
Note: The Irish Banking Federation (IBF) is the principal voice of the banking and financial services sector in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Nuala Buttner, Q4 Public Relations, tel 085 1744275; IBF tel 01-6715311