- House purchases continue to account for vast majority of new mortgage approvals
The latest figures from the IBF Mortgage Approvals Report, published by the Irish Banking Federation (IBF), show that 1,494 mortgages to the value of €252 million were approved in the three months ending February 2014.*
The following are the key elements:
A total of 1,494 mortgages were approved in February, of which 1,397 (93%) were for house purchase.
The number of mortgages approved showed a year-on-year increase of 32.6% and a month-on-month fall of 5.9%.
The value of mortgages approved in February was €252 million of which €243 million (96%) was for house purchase.
The value of mortgage approvals increased by 40.8% year-on-year and fell 8.7% month-on-month.
This graph presents the cumulative year to date trend in mortgage approvals up to February each year.
The following graph presents the trend in approvals on a monthly basis since February 2012.
Commenting on the figures, IBF Chief Executive, Noel Brett stated:
“February’s mortgage approvals figures have shown considerable growth on a year-on-year basis with the volume and value of approvals up over 32% and 40% respectively on the same period in 2013. And while we have seen a decline on a monthly basis, due to seasonality factors arising in the first quarter of each year, the all-important year on year trend is a positive indication that mortgage activity is strengthening and the market is growing – a trend we hope to see sustained in the months ahead. However, continued recovery and growth in the mortgage market will crucially depend on the acute shortage of suitable properties in key locations of demand being addressed. While the Government has flagged its concern about this and its intention to address it, the publication of detailed measures is awaited”.
Data collection for the IBF Mortgage Approvals Report began in August 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The report can be viewed on the IBF website here.
*All figures are based on the three-month moving average. Year-on-year compares the average for the three months ending February 2014 with the three months ending February 2013. Month-on-month compares the average for the three months ending February 2014 with the three months ending January 2014.
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: Jillian Heffernan Marketing Communications Manager, IBF, Ph: 01 4748835 / 087 9016880