Mortgage drawdown volumes tumble by more than 20%

Between July and September, there were 11,614 mortgages drawn down by borrowers worth approximately €3.17bn. 

Mortgage drawdown volumes have dropped by over 20% compared to last year as repeated rate increases from the European Central Bank continue to impact the market. 

According to the latest data from the Bank and Payments Federation Ireland (BPFI), between July and September there were 11,614 mortgages drawn down by borrowers worth approximately €3.17bn. This represents a decrease of 21.8% in both volume and value compared to the same period in 2022.

Despite this, it is an increase of 17.4% in volume and 14.9% in value compared to the April to June period this year. 

First-time buyers represented 60% of mortgages drawn down.  Remortgaging and switching volumes represented close to 8% of all mortgage drawdowns and 7.1% of the volume. This is a drop of 79.6% and 81.5% year-on-year respectively.

Brian Hayes, chief executive of the BPFI, said first-time buyers are dominating the mortgage market with the volume of mortgages drawn down at their highest levels since 2007 and the value at its highest since 2006.

“First-time buyers accounted for almost 80% of home mortgage drawdowns on new properties and 69% of home mortgage drawdowns on second-hand properties between July and September,” he said.

Mortgage approvals

The BPFI also published data on mortgage approvals which showed a continued decline in switching or remortgaging activity during the month of September driving an overall slowdown in the market.

The number of mortgages approved in September fell by 22.2%. compared to September 2022, to 4,161 mortgages. Of these approvals, 2,541 were first-time buyers while 919 were mover-purchasers. 

Remortgaging and switching approvals stood at 366 for the month, down 75.8% compared to last year. Mortgages approved during the month were valued at €1.1bn, down 19.7% year-on-year.