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Jump in FTB mortgages for new properties

Figures from the main banks show that mortgage activity grew again in September compared with the same month last year.

Banking Payments Federation Ireland (BPFI) also said that mortgage drawdowns rose in the third quarter (Q3) of this year compared with a year earlier, but at a slower rate than in the previous quarter.

The BPFI figures show that banks approved 4,445 mortgages during September, with first-time buyers (FTBs) accounting for almost 60% of the total.

FTBs dominate

Although the number of mortgages approved was down 4.4% compared with August, it represented a 6.8% increase on the same month last year.

Mortgages approved in September were worth just over €1.3 billion, with just over 61% of this amount linked to FTBs.

The value of mortgage approvals fell by just over 5% month-on-month, but rose by 12.4% year-on-year.

Re-mortgaging and switching activity in September rose by 19% in volume terms and 26% in value year-on-year.

Switching surge

The BPFI figures also show that 11,774 new mortgages worth €3.4 billion were drawn down by borrowers during Q3 of 2024. This represented an increase of 1.4% in volume and 7.4% in value on the same quarter of 2023.

FTBs accounted for around 60% of the drawdowns, both by volume and value.

Re-mortgage/switching volumes and values rose by 26.1% and 28% year-on-year, respectively.

The BPFI said that this was the first time both switching figures had increased since the first quarter of 2023.

BPFI chief executive Brian Hayes said that mortgage drawdown volumes on new properties (including self-builds) increased by 14.7% year-on-year in Q3 2024, with more than 3,000 mortgages on new properties – the highest Q3 level since 2008.

“This increase was driven mainly by an increase in FTB mortgages on new properties, which rose by 18.8% to 2,489, signalling continued momentum in new home-building,” he stated.