Mortgage approvals down in May26th June 2020
Almost 1,900 mortgages worth €442 million approved despite severe restrictions and economic uncertainty
Banking & Payments Federation Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for May 2020. The following are the key elements:
- A total of 1,879 mortgages were approved in May 2020 – some 852 were for FTBs (45% of total volume) while mover purchasers accounted for 424 (23%).
- The number of mortgages approved fell by 14.6% month-on-month and fell by 61.9% compared with the same period last year.
- Mortgages approved in May 2020 were valued at €442 million – of which FTBs accounted for €200 million (45%) and €118 million by mover purchasers (27%).
- The value of mortgage approvals fell by 15.9% month-on-month fell by 61.1% year-on-year.
Speaking on the publication of the data, Brian Hayes, Chief Executive, BPFI said: “As expected we have seen a further fall off in mortgage approvals figures during May, down just over 14% in volume terms on April. This is not unexpected given the scale of the lockdown and physical restrictions, and their impact on employment figures and economic uncertainty. Similarly, the 60% fall in the volume of approvals when compared to May 2019 is not surprising given the scale of the pandemic and its immediate impact on incomes and business activity.
“However, even under the most severe restrictions when the majority of the country was still shut down and during what has been an unprecedented shock to both the Irish and global economy, it is significant that almost 1,900 mortgages valued at €442 million were approved here during the month of May. This shows that the demand within the housing market may be more resilient than expected and also demonstrates that banks are meeting this demand and continuing to approve new applications despite the challenges in the current environment.”
“Our strong message to would-be borrowers, whose income and employment circumstances have not been impacted by the current pandemic and who meet normal lending criteria, is to actively proceed with their applications,” said Mr. Hayes.
The BPFI Mortgage Approval Reports May 2020 can be viewed on the BPFI website 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 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
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