Rate of mortgage approvals 'flatlined' in September

First-time buyers and mover purchasers accounted for 81% of the total value of mortgages drawn down

The number of mortgage drawdowns increased by over 14% to nearly 11,000 between July and September, when compared with the same time last year, but mortgage approval figures for September "show a flatlining in activity".

Latest figures from the Banking and Payments Federation show that first-time buyers account for almost half of all drawdowns. First-time buyers and mover purchasers accounted for 81% of the total value of mortgages drawn down.

The volume and the value of re-mortgage loans continue to increase. There were 1,420 re-mortgage loans in the third quarter to the value of €325 million.

The number of mortgages for new properties rose by 19.9% year-on-year, while the value of those mortgages jumped by 26% to €588 million. Secondhand property mortgage volumes grew by 4% year-on-year.

But growth in mortgage approvals was considerably weaker during the third quarter. The number of mortgages approved rose by 4.5% year-on-year and fell by 8.6% month-on-month.

Commenting on these latest figures, Director Public Affairs with the Banking and Payments Federation, Felix O’Regan, said the level of mortgage drawdown activity continued the pattern of strong growth through the third quarter of this year. "As has been evident for quite some time, first-time buyers account of the lion’s share of all drawdowns - in excess of 48% in both volume and value terms," he said.

"Mortgage approval activity presents a slightly different picture. On an annualized basis activity by both volume and value shows an increase of 0.3%. However, the most recent mortgage approval figures for September show a flatlining in activity. The consensus among financial analysts is that this is most likely explained by the impact of the Central Bank’s macroprudential measures and by challenges in the housing supply market. Notwithstanding these factors, BPFI member banks remain fully focused on supporting home ownership at every turn."