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First-time buyers buck mortgage trend

Figures from the main Irish banks show that May was the busiest month on record for approval of mortgages from first-time buyers (FTBs).

Banking and Payments Federation Ireland (BPFI) said that banks approved 3,170 mortgages for FTBs during the month – an increase of just over 20% compared with the same month last year.

Over 12 months, the value of approved FTB mortgages rose by 26% to €926 million – also the highest figure since the banks began collecting the data in 2011.

Overall figure falls

The total number of mortgages approved in May (4,928) fell, however, by 8% compared with the same month last year.

The value of all mortgages backed in May was just under €1.4 billion – a drop of 4% compared with May last year.

FTBs accounted for 64% of all mortgages approved during the month.

‘Declining trend’

Remortgaging and switching activity slumped by more than 70%, in both volume and value terms, compared with May 2022.

Approvals given to mover purchasers also fell, and have now recorded annual declines in 16 of the last 19 months.

BPFI Chief Executive Brian Hayes (pictured) said that FTB mortgages were continuing to buck a declining trend, pointing out that the value of FTB approvals over the past 12 months had topped €8 billion for the first time since the data series began in 2011.