Monthly drop in mortgage approvals

A near 6% monthly fall in home loan approvals is “indicative of a dysfunctional market”, an industry representative has stated.

Figures published yesterday by the Irish Banking Federation show a 32.6% year-on-year increase in mortgage approvals for February, with 1,494 mortgages being granted to a total value of €252m. However, on a monthly basis, February represented a 5.9% drop in approvals.

Federation chief Noel Brett said the month-on-month fall can be explained by “seasonality factors”, but that the annualised growth “is a positive indication that mortgage activity is strengthening and the market is growing”.