Mortgage Drawdowns Q2 2018

  • 9,339 mortgages to a value of €2,014 million drawn down in Q2 2018
  • Loan volumes in Q2 2018 up 16.8% year-on-year and 18.5% quarter-on-quarter
  • Values over the same period up 22.2% year-on-year 18.2% quarter-on-quarter

Banking & Payments Federation Ireland’s (BPFI) Mortgage Drawdowns report published today shows that 9,339 new mortgages to the value of €2,014 million were drawn down by borrowers during the second quarter of 2018.

These latest figures represent an increase of 16.8% in volume and 22.2% in value on the corresponding second quarter of 2017.  They also represent an increase of 18.5% in volume and 18.2% in value compared with the previous quarter (Q1 2018).

First-time buyers (FTBs) remain the single largest segment by volume (48.69%) and by value (48.8%).  Together, FTBs and mover-purchasers accounted for 75.4% of the total value of mortgages drawn down.

The volume and the value of re-mortgage loans (switching) continue to increase: there were 1,304 re-mortgage loans in Q2 2018 to the value of €298 million. This reflects year-on-year growth of 95.5% in volume and 93.5% in value.

This report includes data on the status of mortgaged property for the first time. Mortgage activity on new property grew significantly faster than activity on secondhand: the number of mortgages on new properties rose by 29.5% year-on-year to 2,296, while the number on secondhand properties rose by only 1.9% to 5,085.

The BPFI Mortgage Drawdowns report can be viewed on the web 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 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Jillian Heffernan, Head of Communications, jillian.heffernan@bpfi.ie 087 9016880

Mortgage Approvals  – June 2018

Banking & Payments Federation Ireland (BPFI) has published the latest figures from the BPFI Mortgage Approvals Report for June 2018.*

The following are the key elements:

  • A total of 4,272 mortgages were approved in June 2018 – some 2,093 (49.0% of total volume) were for first-time buyers (FTBs) while mover purchasers accounted for 1,249 (29.2%).
  • The number of mortgages approved rose by 0.7% year-on-year and fell by 4.5% month-on-month.
  • Mortgages approved in June 2018 were valued at €962 million – of which FTBs accounted for €474 million (49.3%) and €320 million (33.2%) by mover purchasers.
  • The value of mortgage approvals rose by 3.4% year-on-year and fell by 5.1% month-on-month.

Re-mortgage/switching approvals rose on a year-on-year basis – by 64.6% in volume and by 58.4% in value terms.

The annualised volume of mortgage approvals reached 44,153 in the twelve months ending June 2018, marginally (0.07%) higher than the twelve months ending May 2018. The annualised value of approval rose by 0.3% to almost €9. 8 billion.

The only segment in which annualised volumes grew was switching, increasing by 4.4% to 4,807. The fasest growing segment in value terms was still switching where the value of lending rose by 4.1% to €1.1 billion.

Data collection for the BPFI Mortgage Approvals Report began in September 2012 covering the period from January 2011 onwards in respect of the market’s main mortgage lenders. The BPFI Mortgage Approvals Report May 2018  as well as the time series data file is available on the BPFI website here.

[*] The full time series of monthly data from January 2011 onwards is available on the BPFI website.

 

Note: Banking & Payments Federation Ireland represents banking and payments 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, Head of Communications, jillian.heffernan@bpfi.ie 087 9016880

Central Bank’s Behaviour and Culture Assessment: BPFI Statement

Banking & Payments Federation Ireland (BPFI) recognise that a great deal of work remains to be done to improve the reputation of – and trust in – the retail banking sector in Ireland.

In this regard BPFI recognises the importance and value of the work conducted by the Central Bank of Ireland (Central Bank) in undertaking behaviour and culture assessments of each of the five main retail banks; and are committed to working, together with our retail member banks, with the Central Bank in helping to bring about further improvement in the consumer focused culture of banking in Ireland.

For our part BPFI and our retail members have initiated work in two related areas.  Good progress has been made in identifying the broad architecture, governance and functions of a new independent body on banking culture.  Further details will be available later in the year regarding the appointment of an independent Chairperson and Board for this body.  We have also advised the Central Bank and the Minister for Finance as to our support for enhancement of the current fitness and probity regime to implement a new framework of accountability.

“BPFI and our retail member banks accept our responsibility in leading the process of further building trust with customers, other stakeholders and the wider public; and to working with the Central Bank, with Government and other relevant authorities in delivering on this initiative”, stated Maurice Crowley, BPFI’s Acting Chief Executive.

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Note: Banking & Payments Federation Ireland represents banking and payments 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, Head of Communications, jillian.heffernan@bpfi.ie 087 9016880

Mortgage Switching

BPFI notes the publication of changes which the Central Bank is making to the Consumer Protection Code 2012 in respect of mortgage switching.  BPFI and its member banks are fully supportive of enhanced transparency and active competition in the mortgage market; and in that vein are examining the Central Bank’s publication with a view to implementing the required changes which come into effect on 1 January 2019.

Stakeholder Engagement

An OECD delegation recently held a series of meetings on the issue of Access to Finance with various parties in Dublin. BPFI’s Director of Public Affairs participated in one such meeting along with representatives from the Central Bank and the Dept of Business, Enterprise and Innovation in order to present on the supportive role played by the banking sector.

Financial Services & Pensions Ombudsman Strategic Plan

BPFI representatives attended the launch by the Minister for Finance, Paschal Donohoe TD, of the Financial Services & Pensions Ombudsman (FSPO) Strategic Plan for 2018-2021 ‘Enhancing the Customer Experience’, in the newly renovated offices of the recently amalgamated entity. The plan sets out the vision for the next three years with an overall objective of ensuring that the FSPO can deal efficiently with an increased number of complaints and enhance the customer experience of the process.

As a key stakeholder in the independent complaints process, BPFI will continue to work with the FSPO to ensure that consumers are aware of the service and responsive to the changing requirements. We look forward to further engagement with the FSPO on the Strategic Plan.

ESCB seeks views on integrated reporting

The European System of Central Banks (ESCB) formally started its cost-benefit analysis (CBA) of the proposed integrated reporting framework (IReF) in June 2018. The IReF aims to integrate, as far as possible, the existing ESCB data requirements for banks (mainly balance sheet, interest rate, securities holding and AnaCredit statistics) into a standardised framework that should apply directly across the euro area and harmonise reporting.

The CBA starts with national central banks issuing questionnaires to banks and associations in their country to clarify the main cost factors and potential benefits of the IReF. The Central Bank of Ireland has begun issuing the questionnaire to affected banks as well as BPFI. It will be important for banks to respond directly to the questionnaire but BPFI will support its members in this process through the new BPFI Statistical Reporting Working Group. This group is open to all BPFI members.

In its dialogue with the banking industry in March 2018, the ESCB agreed to work with industry to develop guiding principles on integrated reporting and will liaise with other European institutions on the way forward for the IReF. The European Banking Federation’s Reporting & Statistics WG, which is chaired by BPFI, is working on this with the European Central Bank.

BPFI Workshops on Open Banking and PSD2

BPFI and its affiliate the Fintech and Payments Association of Ireland (FPAI) are hosting a series of four workshops throughout July to study the implications of the introduction of Open Banking and PSD2.

Organised in association with Ostia Solutions, FinTech Innovations and the Irish Centre for Cloud Computing and Commerce, the workshops are designed to collate the experience and opinions of participants with various perspectives on Open Banking and to identify the pertinent questions an organisation operating in this market will need to consider.

The first workshop focused on application programming interfaces (API’s) under a range of topics including authentication, PSD2 sandboxes and identity management. The second workshop on Business Models looked at areas such as payment providers, challenger banks and bank collaboration with FinTech. The remaining workshops taking place on 24 and 30 July and will look at the themes of regulatory/compliance issues and the consumer respectively. Further information and booking can be found here.