Mortgage approvals slip amid fall-off in mover-purchasers

Number of first-time buyer approvals declined marginally by 1.4% to 2,822 during August, valued at a combined €920m

During August, there were 4,536 mortgages approved, down 2.5% year-on-year, worth a combined €1.46bn.

Mortgage approvals fell slightly during August as the number of mover-purchasers approved fell by nearly 17% compared to the same month last year, new data from the Banking and Payments Federation, Ireland (BPFI) shows.

During the month, there were 4,536 mortgages approved, down 2.5% year-on-year, worth a combined €1.46bn, up 4.1%. The number of first-time buyer approvals declined marginally by 1.4% to 2,822 during the month, valued at a combined €920m.

The number of mover-purchasers stood at 825 for the month — with a combined value of €318m — down from 991.

The average mover-purchase mortgage value reached its highest level since the data series began, at €384,887, almost €31,000 more than in August 2024.

Chief executive of the BPFI Brian Hayes said these increases “broadly reflect housing price inflation”, with the most recent Central Statistics Office data showing the national Residential Property Price Index increased by 7.5% in the 12 months to July.

Remortgaging and switching activity increased by 13.8% year-on-year, with 504 mortgages approved valued at €152m, while top-up mortgages increased by 9.1% to 299, valued at €48m. The number of residential investment letting mortgages increased by 7.5% to 86.

Chairperson of Irish Mortgage Advisors Trevor Grant said switching activity in the mortgage market has been rising steadily, driven by a combination of factors.

“The combination of fixed-rate maturities, a constrained housing market, and rising property values means that switching activity is likely to remain strong in the months ahead.” 

Total mortgage values reached €16.7bn in the 12 months ending in August, the highest level since the data series began in 2011.