Surge in mortgage approvals driven by first-time buyers

On an annual basis, the value of mortgage approvals rose by 22.9%.

October was one of the busiest months for mortgage approvals in almost a decade with first-time buyers (FTBs) driving the surge.

New home buyers accounted for 58.4% of the 5,207 mortgages approved in October, with the total number of mortgages approved up 15.4% on the same period last year.

The figures from the Banking & Payments Federation Ireland (BPFI) show mortgages approved in October were valued at €1,253 million, of which FTBs accounted for €774 million. On an annual basis, the value of mortgage approvals rose by 22.9%.

Separately, Central Bank statistics show mortgage lending increased in net terms by €97 million last month, compared to a net increase of €102 million in October 2019.

In annual terms, the growth rate remained positive, at 0.9%, down from 1.7% a year earlier.

Annual growth in mortgage lending net flows was €679 million, the lowest since July 2018.

Deposits from Irish households also hit new heights during the Level 5 lockdown, now standing at a record €123 billion.

The drawdown of loans to Irish households in the twelve months up to the end of October exceeded repayments by €19 million, a steep drop from the same month last year where drawdowns exceeded repayments by €1.9 billion.