First-time buyers continue to drive mortgage drawdown and approvals activity - BPFI data

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First-time buyers continue to drive mortgage drawdown and approvals activity - BPFI data

Banking & Payments Federation Ireland (BPFI) announces the latest figures from the BPFI Mortgage Drawdowns Report for Q4 2019 and BPFI Mortgage Approvals Report for December 2019

The following are the key figures from the Mortgage Drawdowns Report for Q4 2019:

  • 12,259 new mortgages to the value of €2,768 million were drawn down by borrowers during the fourth quarter of 2019.
  • This represents an increase of 1.2% in volume and 5% in value on the corresponding fourth quarter of 2018.
  • It also represents an increase of 3.9% in volume and 4.9% in value compared with the previous quarter (Q3 2019).
  • First-time buyers (FTBs) remained the single largest segment by volume (52%) and by value (53%).

As the following chart shows, growth in drawdowns has been evident throughout 2019.

Quarterly Drawdown Activity

In addition, BPFI also published today the latest figures from the BPFI Mortgage Approvals Report for December 2019. The following are the key elements:

  • A total of 2,964 mortgages were approved in December 2019 – some 1,531 were for FTBs (51.7% of total volume) while mover purchasers accounted for 763 (25.7%).
  • The number of mortgages approved rose by 1.9% year-on-year but fell by 29.1% compared with the previous month.  This reflects the seasonal trends generally seen at this time of year (in the past four years, approval volumes have dropped by 28-30% between November and December).
  • Mortgages approved in December 2019 were valued at €696 million – of which FTBs accounted for €362 million (52%) and €204 million by mover purchasers (29.4%).
  • The value of mortgage approvals rose by 6.1% year-on-year but fell by 27.5% month-on-month – again due to seasonal factors.

As the following chart shows, annualised mortgage approval activity to end-December 2019 increased – doing so in volume terms by 0.11% compared with the twelve months ending November 2019.

Annualised Mortgage Approvals

The BPFI Mortgage Drawdowns and Mortgage Approvals reports are attached above can be viewed on the BPFI website here.

Article Published: 29/01/2020