In the 12 months to the end of July, just over 53,500 mortgages, worth almost € 13.2 billion, were approved in Ireland in the 12 months to the end of July, according to the Irish Banking and Payments Federation.
This represents a slightly over 3% increase in approval volumes compared to the 12 months to end June, while the cost of approved mortgages was 3.7% higher.
This is the highest level of annual volumes and approval values since the start of data collection about ten years ago.
“The cost of permits has more than doubled since the 12 months ended October 2016, driven by increased FTB lending (to first-time buyers) and re-mortgages or real estate moves,” said Brian Hayes, CEO of the Federation of Banking and Payments of Ireland.
“These are significant numbers and are very signaling that a reliable pipeline is in place to cut production at the end of the year,” he added.
Mortgage approval is an offer to a client of a line of credit secured by real estate, but it does not guarantee that the mortgage will be withdrawn.
The latest data from BPFI’s July 2021 Mortgage Approval Report shows continued growth, especially for FTB mortgages. Nearly € 1.3 billion in mortgages have been approved, the highest in any month since BPFI began collecting this data in 2011.https://t.co/MQC9sAaOjy pic.twitter.com/rNETfMCAPV
– Banking and Payments Federation of Ireland (@BPFINews) August 27, 2021
The data shows that just over 5,000 mortgages were approved in July alone, with new buyers again accounting for more than half of the activity.
Compared to June, the volume of approvals decreased by 3.3%, but compared to July last year, the number of approvals increased by more than 48%.
The amount of approvals amounted to just over 1.28 billion euros per month, which is 0.6% more than in June, but 58% more than in July last year.
In July 2020, the mortgage market was still in relative depression due to uncertainty about the trajectory of the pandemic, which affected the real estate market as a whole.
“The number of approved mortgages for July shows continued growth, especially for FTB (first time buyer) mortgages. In total, nearly € 1.3 billion in mortgages were approved, the highest in any month since BPFI began collecting this data in 2011, ”said Mr Hayes. …