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Switching activity main driver of growth in robust market

27th September 2018

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

The following are the key elements:

  • A total of 4,185 mortgages were approved in August 2018 – some 1,979 (47.3% of total volume) were for first-time buyers (FTBs) while mover purchasers accounted for 1,187 (28.4%).
  • The number of mortgages approved rose by 5.7% year-on-year and fell by 0.9% month-on-month.
  • Mortgages approved in August 2018 were valued at €931 million – of which FTBs accounted for €436 million (46.8%) and €310 million (33.3%) by mover purchasers.
  • The value of mortgage approvals rose by 9.4% year-on-year and remained unchanged month-on-month.

Re-mortgage/switching approvals rose on a year-on-year basis – by 66.7% in volume and by 81.3% in value terms.

The annualised volume of mortgage approvals reached 44,640 in the twelve months ending August 2018, marginally (0.5%) higher than the twelve months ending July 2018. The annualised value of approvals rose by 0.8% to more than €9.9 billion.

Commenting on the figures, Felix O’Regan, Director Public Affairs stated:

“The latest mortgage approval figures indicate continuing robust mortgage lending in overall terms.  While the volume of approvals for both first-time buyers and mover purchasers show a small year-on-year decline, the value for both show a year-on-year increase; and this is likely reflecting house price increases.  At the same time, switching activity continues to be the main driver of growth, up 81.3% in value and 66.7% in volume year on year; and this is likely reflecting further competition in the marketplace.”

 

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 August 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

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