---

Mortgage approvals down amid switching slump

Figures from the main Irish banks show that there was a sharp drop in the volume and value of mortgages approved in July compared with the same month last year.

Banking and Payments Federation Ireland (BPFI) said that banks approved 4,747 mortgages during the month – a fall of 9.7% compared with the same month last year. Approvals were also marginally lower than in June.

The value of approved mortgages in July was almost €1.36 billion – down 6.7% compared with July 2022.

FTB 12-month figure a record

First-time buyers (FTBs) accounted for just over 60% of the mortgages approved in July, which were valued at €837 million.

The BPFI said that the €8.4 billion worth of mortgages given to FTBs over the past 12 months was the highest on record.

The figures show a continued slump in remortgaging and switching activity, which recorded falls of around 80%, in both volume and value terms, compared with July 2022.

‘Wider slowdown’

Activity in this sector had surged last year as interest rates rose.

Ali Ugur (BPFI chief economist) said that FTB activity remained strong, despite a wider slowdown.

The value of mortgages approved for people moving home over the past 12 months also hit a record of €3.9 billion, but Ugur said that this partly reflected the rising value of mortgages approved in this sector.