Banking representatives play down slowing mortgage activity in February

Fall in the context of a 'significant decline we are seeing in switching activity', Banking and Payments Federation chief says

Banking and Payment Federation Ireland chief executive Brian Hayes said despite the slowdown seen in February, mortgage activity remains at 'historically high levels', with demand being particularly strong among first-time-buyers.

Chief executive of the Banking and Payments Federation of Ireland (BPFI) Brian Hayes has played down a fall in mortgage activity in February, saying it was “expected” given the wave of switching seen in recent months.

New BPFI figures show a significant decline in mortgage switching, while overall mortgage approvals slowed down compared to January.

The number of people switching or topping up their mortgage dropped from 877 in January to 634 in February — a decline of 27.7%. Compared to February 2022, it decline 30.9%. 

The total value of non-purchase mortgages in February came to €144m — down from €205m in January.

Mr Hayes said while the figures showed a slowdown in approvals across all customer segments — both in terms of volume and value — it is in the context of a “significant decline we are seeing in switching activity”.

He said this fall was “expected given the substantial wave of switching undertaken by customers in recent months” with almost €4.3bn in new non-purchase approvals in the year to the end of January.

Mr Hayes added that despite the slowdown seen in February, mortgage activity remains at “historically high levels”, with demand being particularly strong among first-time-buyers.

The total number of mortgages approved in February stood at 3,378 — down from 3,697 in January, a decrease of 8.6%, and the 3,894 recorded in February last year, a decrease of 13.3%.

The majority of these approvals, 1,877, were for first-time buyers, while mover purchases accounted for 801.

The value of mortgages approved in February came to €945m, which is also down from the over €1bn recorded in January. The value of mortgages approved in February 2022 came to €1.028bn.

There were 57,836 mortgages approved in the year up to February valued at €15.85bn.