A total of 5,255 mortgages were approved in July 2022, according to the Banking and Payments Federation.
More than €1.4bn in mortgage approvals were made in July, according to the latest figures from the BPFI Mortgage Approvals Report.
According to the report, A total of 5,255 mortgages were approved in July 2022 – first-time buyers (FTBs) were approved for 2,376 mortgages (45.2% of total volume) while mover purchasers accounted for 1,075 (20.5%).
“We welcome the fact that mortgage customers are actively taking steps to minimise the impact of the ECB’s planned interest rate increases, whether they switch to another mortgage lender or renegotiate with their current lender”
The number of mortgages approved fell by 11.8% month-on-month and rose by 4.4% compared with the same period last year.
Growth in mortgage activity
Mortgages approved in July 2022 were valued at €1,454m– of which FTBs accounted for €660m (45.4%) and mover purchasers for €343m (23.6%).
The value of mortgage approvals fell by 12.7% month-on-month and by rose by 13.3% year-on-year.
Non-purchase mortgage activity, which includes switching and top-ups, grew by 95.8% in volume terms year on year to 1,741 and by 147.6% year-on-year to €441 million over the same period.
“Our latest mortgage data is showing continued growth in mortgage activity which is being driven mainly by non-purchase mortgages – primarily those who are re-mortgaging or switching. July 2021 was an exceptionally busy month so it’s no surprise to see a drop in year-on-year terms,” said Brian Hayes, CEO of the Banking and Payments Federation of Ireland (BPFI).
“Looking at the annualised figures which allows us to more accurately assess emerging key trends, there were there were 55,689 mortgage approvals in the twelve months ending July 2022, valued at €14,753m. This represented a volume increase of 0.40% and a value increase 1.17% of compared with the twelve months ending June 2022.”
“Non-purchase mortgage activity, most of which is switching, has increased sharply since May, reflecting both the competition in the market and the fact that mortgage customers continue to shop around for better rates.
“We welcome the fact that mortgage customers are actively taking steps to minimise the impact of the ECB’s planned interest rate increases, whether they switch to another mortgage lender or renegotiate with their current lender. Central Bank data shows that that the value of housing loans renegotiated at interest rates fixed for more than one year jumped to €1.2bn in Q2 2022 from €0.7bn in Q2 2021.”