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Mortgage slide continues as FTB growth slows

Figures from the main banks show that there was a sharp drop in mortgage approvals in November compared with the same month last year.

Banking Payments Federation Ireland (BPFI) said that banks approved 4,202 mortgages during the month – just over 61% for first-time buyers (FTBs). Mover purchasers accounted for almost 23% of the market.

The November approvals figure fell by almost 23% compared with a year earlier, and by 1.7% from October’s figure.

Switching slump

Mortgages approved in November were valued at just over €1.2 billion – down 19.4% compared with a year earlier, and 0.5% lower than in October.

FTBs accounted for almost 63% of the total value of November mortgages approved.

Year-on-year, re-mortgaging or switching activity fell by 75% in volume terms, and by almost 78% in value.

FTB figures at new high

Brian Hayes (chief executive, BPFI) said that the overall slowdown in mortgage activity was being driven mainly by lower levels of switching.

He pointed out that mortgage approvals for FTBs in the 12 months to November hit their highest levels since the organisation began compiling the figures in 2010.

The BPFI figures show that 30,550 FTB mortgages, valued at more than €8.8 billion, were approved in the 12-month period.

Hayes added, however, that there were signs of a “moderation” in growth of FTB approvals, with annual growth of just 1.7% in November. The value of FTB approvals increased by 8.6%, however, reflecting higher house prices.