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FTBs still driving mortgage activity

Figures from the main banks show that mortgage activity grew again in August compared with the same month last year, while approvals for first-time buyers (FTBs) hit their highest 12-month levels since the figures started being published in 2011.

Banking Payments Federation Ireland (BPFI) said that banks approved 4,650 mortgages during the month, with first-time buyers (FTBs) accounting for almost 62% of the total.

Although the number of mortgages approved was down 12.5% compared with July, it represented a 2.6% increase on the same month last year.

Value of mortgages

Mortgages approved in August were worth just under €1.4 billion, with just under 63% of this amount linked to FTBs.

The value of mortgage approvals fell by just over 13% month-on-month, but rose by 7.4% year-on-year.

Re-mortgaging and switching activity in August rose by 33% in volume terms year-on-year, although the BPFI says that recent increases in this category are coming from a low base.

‘Robust’ activity

Brian Hayes (chief executive, BPFI) described approval activity as “robust”, particularly among first-time buyers.

“On an annualised basis, 30,583 FTB mortgages valued at €9.2 billion were approved in the 12 months to August 2024 – the highest FTB value for any 12-month period since the data series began in 2011,” he stated.

Hayes added that the number of Help to Buy applications to Revenue in the first eight months of 2024 (25,359) had already exceeded the total number of applications in 2023.

“Indications continue to point to a strong pipeline for FTB mortgage drawdowns in the short term,” he concluded.