Mortgage activity slows as more rate hikes expected 

There were 4,766 mortgage approvals in June, a drop of 20% compared to the same month last year, new figures show

While overall mortgage activity is slowing down, first-time buyers remain active, with mortgage approvals growing compared to last year despite interest rates increasing by 4% in that time. Picture: iStock

The number of mortgage approvals and drawdowns have fallen sharply as repeated interest rate hikes from the European Central Bank (ECB) make borrowing more expensive, new banking industry figures suggest.

However, while overall mortgage activity is slowing down, first-time buyers remain active, with mortgage approvals growing compared to last year despite interest rates increasing by 4% in that time, with more hikes expected after a meeting of the ECB on Thursday.