The number of approved mortgages and drawdowns continues to rise

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According to the latest data from the Federation of Banking and Payments of Ireland, the number of approved and issued mortgages continues to grow.

In June, 5,203 mortgages were approved, which is 11% more than in the previous month and almost 130% more than in the same month last year.

First Buyers (FTB) received 53% of the total of these new mortgages approved, while novice buyers accounted for just over 24%.

Today’s data also shows that mortgages approved in June 2021 were valued at € 1.276 billion, up 10% from the previous month and 138% from June 2020.

Meanwhile, BPFI data also shows an increase in the number of new mortgage loans issued in the second quarter of the year.

During this period, 9,625 new mortgage loans were issued for 2.2 billion euros, an increase of 45% in volume and 52% in value compared to the same period last year.

Compared to the previous quarter, this represents an increase of 5.9% in volume and 4.1% in value.

The numbers show that for the first time, buyers remained the largest segment by volume at 50.9% and value at 51.2%.

New real estate, including self-built, accounted for 27.8% of total purchases or mortgages for construction in the second quarter of the year, up from 29.1% in the same quarter of 2020.

The numbers show that the cost of mortgages for the purchase of secondary real estate in the second quarter reached its highest level since 2008.

Brian Hayes, CEO of BPFI, said that you can see the impact of the Covid-19 restrictions on the types of properties for which mortgages are issued.

“We see that the number of payments on mortgage loans for new properties increased by 40.9% year on year in the second quarter of the year.

“However, drawdowns on mortgage loans for secondary real estate grew faster – by 50.6% in volume and 65.2% in value,” he said.

Hayes said this highlights the constraints we saw in the construction industry during the pandemic, which has a clear impact on supply.

“Now that all housing construction is underway again, the challenge remains how to meet the high demand for housing, clearly visible in today’s figures, with the continuing pressure that is growing on supply,” he said.



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