Average Irish homebuyer mortgages hit record high

Latest mortgage figures show average homebuyer mortgage surpasses 2008 peak levels and hits record high in Q3 2022.

Average homebuyer mortgages, including first time buyers and mover purchases, stood at €284,623, surpassing levels seen during the peak of the market in 2008 at €268,220.

That’s according to new data from Banking & Payments Federation Ireland (BPFI) has today (31 October) published the latest figures from the BPFI Mortgage Drawdowns Report for Q3 2022 and the BPFI Mortgage Approvals Report for September 2022.

“First time buyers have come to dominate the market for new/self-builds accounting for 78.2% of the value of home mortgages on new properties in Q3 2022”

Overall, the reports show continued growth in both mortgage approvals and drawdowns in Q3 2022 driven by a further jump in mortgage switching. However, September’s approvals figures show the pipeline for home purchase mortgages is weaker than earlier this year.

Continued growth in approvals

The report shows that a total of 5,350 mortgages were approved in September 2022 – some 2,460 were for FTBs (46%) of total volume) while mover purchasers accounted for 1,063 (19.9%).

The number of mortgages approved in September fell by 3.5% month-on-month and rose by 12.2% year-on-year. 

Mortgages approved in September 2022 were valued at €1.47bn – of which FTBs accounted for €665m (45.2%) and €345m by mover purchasers (23.4%).

“Looking at the latest mortgage figures, our reports today are showing continued growth both in approvals and drawdowns driven in large part by the high level of switching activity we are seeing in the market,” said Brian Hayes, CEO of BPFI.

“Year on year we can see the number as well as the value of non-purchase mortgage drawdowns (which are mainly switching but also include top-ups) more than doubled in Q3 2022 reflecting the fact that mortgage customers are seeking out better rates in the wake of the interest rate increases recently announced by the ECB.

“One of the most notable points from this quarter’s drawdowns figures is the new record high which has been set for the average homebuyer mortgage which has now hit €284,623 and is over €28,000 more than it was in Q3 2021 (€256,547). This comes on the back of strong house prices inflation and the continuing challenge of supply in the housing market.”

“Interestingly when we look at the types of properties being purchased we can see that FTBs have come to dominate the market for new/self-builds accounting for 78.2% of the value of home mortgages on new properties in Q3 2022.”

The following are the key figures from the Mortgage Drawdowns Report for Q3 2022:

  • A total of 14,851 new mortgages to the value of €4bn were drawn down by borrowers during the third quarter of 2022. 
  • This represents an increase of 29.4% in volume and 45.7% in value on the corresponding third quarter of 2021.
  • FTBs remained the single largest segment by volume (44.3%) and by value (43.9%).  
  • Non-purchase mortgage activity, which includes switching and top-ups, grew by 115.8% in volume terms year on year to 5,081 and by 175.8% year-on-year to €1,297 million over the same period.
  • The average mortgage drawdown value for home mortgages, €284,623, again set new records. The average FTB mortgage drawdown jumped to €270,568 in Q3 2022 from €243,271 a year earlier, while the average mover purchase drawdown rose to €315,463 from €284,836 over the same period.
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