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Mortgage approvals drop in February – BPFI

Figures from the main banks show that the volume of mortgages approved in February fell compared with the same month last year. 

Rising house prices meant, however, that the value of mortgages approved for first-time buyers (FTBs) and those moving home rose to record levels. 

Banking Payments Federation Ireland (BPFI) said that 3,420 mortgages were approved in February 2025 – with FTBs accounting for just over 60% of the market. 

The number of mortgages approved rose by 0.7% compared with January but dropped by 4.5% compared with the same period last year. 

Values up 6.6% 

Mortgages approved in February were valued at just over €1 billion – of which FTBs accounted for almost 63% and mover purchasers for almost 22%. 

The value of mortgage approvals rose by 5.7% month-on-month and by 6.6% year-on-year. 

Re-mortgaging and switching activity fell by 2.8% in volume terms year-on-year and rose by 15.5% in value in the same period. 

BPFI chief executive Brian Hayes described mortgage approvals as “stable”, despite the slowdown in February activity. He said that there had been an annual drop of 9.9% in the number of approvals for move purchasers. 

‘Competition to intensify’ 

Hayes pointed out, however, that the average value of FTB and mover-purchase approvals had reached their highest levels since the data series began in 2011 – at €322,050 and €375,495, respectively. 

“This reflects higher housing prices across the country, which increased by 8.1% in the 12 months to January 2025, according to the Central Statistics Office,” he stated. 

“It’s clear that housing demand remains strong, especially from FTBs, supported by employment and earnings growth. 

“However, supply constraints continue, which means that competition between prospective buyers – both FTBs and movers – could intensify in the months ahead,” he con