Big jump in mortgage drawdown as permits also rise

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New data show that in the second quarter, borrowers used about 9,625 new mortgages, worth 2.23 billion euros.

This represents a 45.4% increase in volume and a 52.5% increase in value over the same period a year earlier.

On a monthly basis, volumes were up 5.9% and values ​​were up 4.1%.

The data, which was compiled by the Banking and Payments Federation of Ireland (BPFI), shows that for the first time buyers remain the largest single segment, accounting for 50.9% of all approved new mortgages.

In the second quarter, there were 7,438 withdrawals of mortgage loans for purchases totaling 1.8 billion euros. Such drawdowns increased by 47.8% compared to the same three months of 2020.

Residential mortgage investment in rent increased 60% year-on-year to 248, while re-mortgage / move-out drawdowns jumped 35.7% to 1,519. Completions also rose 43.4% to 668.

Activity approval

Additional BPFI data show that 5,204 mortgages were approved last month, totaling € 1.27 billion. The number of permits increased by 129.9% compared to the same quarter of 2020. In value terms, the number of permits increased by 138%.

4,167 approvals were received for the purchase of new mortgage loans for a total of 1.06 billion euros.

This translates into a 146.9% increase in sales over the same period last year and an increase of 159.1% in value.

New buyer approvals rose 160.2% to 2,755, while mortgages rose 128.5% to 1,273.

The number of housing investments allowed for rent increased by 93.1% to 139.

Re-mortgage approvals / conversions rose 66% to 707, while top-ups provided increased 120.8% to 329.

Bounce house construction

Separately, a Goodbody report showed that Irish housing construction has rebounded significantly from a prolonged lockdown earlier in the year.

His analysis of Building Energy Ratings (BER) statistics shows that in the second quarter, the number of homes commissioned increased by 39% compared to the same period last year. However, construction completion was estimated to be 7 percent lower compared to the second quarter of 2019.

More notable is the spike in housing construction starting in April and May, underscoring the current rise in housing demand.

Dublin was the region with the worst number of completed homes, according to Goodbody chief economist Dermot O’Leary. Despite an estimated 35 percent year-on-year growth, completion was 24 percent lower than in the second quarter of 2019.

After all residential projects were allowed to resume operations on April 12, construction activity has rebounded significantly, according to an analysis of GeoDirectory data. It classified 18,911 buildings as under construction in June 2021, up 38.4% from a year earlier.

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