The Banking & Payments Federation Ireland (BPFI) has released new figures indicating a decrease in mortgage approvals in June on both monthly and yearly bases, as well as a dip in mover-purchaser operations. However, the statistics also suggest that first-time buyers are maintaining their stronghold over the market.
The industry association has unveiled its the second quarter mortgage drawdowns report of 2024, as well as its June report on mortgage approvals. The data reveals that the second quarter drawdown volumes for first-time buyers have now climbed to their highest level since 2007.
The second quarter of 2024 saw 10,110 new mortgages totalling €2.85 billion claimed by borrowers, marking a 2.2% volume increase and 3.3% value upsurge from the same period in 2023. This volume is also 20% higher, and value 21% greater than the first quarter, with first-time buyers making up close to two-thirds of the market.
However, one noteworthy decline within the total drawdowns was seen in remortgage and switching volumes and values, which decreased 6.9% and 14.9% year-on-year respectively. This contraction is believed to be a reflection of the slowdown in mover-purchaser transactions, potentially due to a restricted supply of second-hand properties.
In June alone, 4,480 mortgages received approval. First-time buyers constituted 61.2% of the total or 2,740 mortgages, while mover-purchasers represented 21.9% or 980 mortgages. Nonetheless, the monthly and yearly approval rates showed a reduction of 1.7% and 6% respectively, with a total value of €1.34 billion. The share of first-time buyers in this value was 62.8% or €841 million, whereas mover-purchasers accounted for 26.4% or €354 million.
Interestingly, the value of approved mortgages also witnessed a dip, representing a 1.8% decrease month-on-month and 1.1% reduction year-on-year. Conversely, remortgage or switching activity saw a robust increase of 24.3% in volume and 24.4% in value year-on-year.
Brian Hayes, Chief Executive of BPFI, highlighted that first-time buyers continue to take centre stage in the market, despite some overall slowing down of activity. The second quarter saw the largest number of mortgages drawn down by these first-time buyers since 2007, with a total of 6,300, according to our most recent mortgage information.