Mortgage approvals drop 23% as rates take their toll 

The average mortgage for first time buyers is now just shy of €295,000 which is €19,000 higher when compared to November 2022.

The number of mortgage approvals dropped by nearly 23% in November compared to the previous year as the numerous interest rate hikes continue to weigh down the market, new data from the Banking and Payments Federation, Ireland (BPFI) shows.

A total of 4,202 mortgage approvals were given during November of which first-time buyers accounted for the majority, 61.3%. The average mortgage for first-time buyers is now just shy of €295,000 which is €19,000 higher when compared to November 2022.

Compared to the previous November, the number of mortgage approvals for first-time buyers increased marginally by 1.7% but switching activity fell by a massive 75% while mover-purchaser activity dropped 16.5%.

Residential investment mortgages also dropped 23.8%.

The total value of all mortgage approvals in November came to €1.2bn which is 19.4% lower than the same period the year prior.

Brian Hayes, chief executive of the BPFI, said mortgage approvals for first-time buyers reached record highs in the 12 months to November reaching 30,550 valued at €8.8bn — the highest volume and value since the series began in 2010.

Overall, there have been 50,470 mortgages approved in the same period valued at €14.4bn.

“Notwithstanding strong first-time buyer activity, we continue to see an overall slowdown in activity with the total number and value of mortgages approved in November 2023, largely driven by lower switching levels,” Mr Hayes said.