Mortgage lending to first-time buyers in January hit an 11-year-high, according to new figures from the Banking & Payments Federation Ireland (BPFI).
A total of 3,621 mortgages were approved last month, of which 1,868 mortgages (51.6 per cent) were for first-time buyers (FTBs) and 802 (22.1 per cent) were for mover purchasers.
Mortgages approved in January 2022 were valued at €932 million, of which first-time buyers accounted for 51.3 per cent, while mover purchasers accounted for 26.1 per cent.
In total, the number of mortgages approved rose by 7.9 per cent compared with the same period last year, with the value of mortgage approvals having also experienced a 13.2 per cent increase.
@BPFINews Mortgage Approvals for January 2022 show a total of 3,621 mortgages were approved in January 2022, valued at €932 million – of which FTBs accounted for €479 million (51.3%) and mover purchasers for €243 million (26.1%).https://t.co/wzgRKpVuiV#mortgageapproval pic.twitter.com/DlazZ3A9N8Advertisement
— Banking & Payments Federation Ireland (@BPFINews) February 24, 2022
However, month-on-month mortgage approvals fell by 6.1 per cent with a 7.8 per cent drop in mortgage value.
Meanwhile, remortgaging or switching activity experienced a jump with a 37.3 per cent rise in activity when compared to January 2021.
The figures also recorded the highest January volume or value for switching since the data series began in 2011, with an increase of 48.1 per cent.
“Our latest mortgage approvals data shows mortgage approval activity performed well in January.
“We saw continued year-on-year growth in both approval volumes and value especially amongst first-time buyers with volumes up by 9.3 per cent year-on-year and values up 17 per cent.
“In fact, our data shows this was the highest January volume or value for FTBs since the data series began in 2011.
“This points to a solid pipeline for drawdown activity as we look to the year ahead.
“The report also shows an increasing trend in the volume of switching, a trend that has been continuing for some time which is perhaps a reflection of competition in the market where customers are availing of different options available to them.”