The number of mortgages approved by Irish banks in July rose 12% compared to July of last year with first-time buyer approvals passing the €1bn mark.
New figures from the banking representative body, Banking & Payments Federation Ireland (BPFI) show a total of 5,313 mortgage approvals in the month. The number of mortgages approved rose by 18.6% month-on-month and by 11.9% compared with the same period last year.
The BPFI said first-time buyers (FTBs) were approved for 3,291 mortgages (61.9% of total volume) while mover purchasers accounted for 1,231 (23.2%). The value of mortgage approvals rose by 20.2% month-on-month and by 18.8% year-on-year.
The data shows strong growth in homeowners moving or switching their mortgages. Re-mortgage/switching activity rose by 22.6% in volume terms year-on-year and by 27.3% in value in the same period.
Brian Hayes, chief executive, BPFI said the report shows strong growth in mortgage approval activity in July due to the rise in the volume and value of approvals.
“During the same period, first-time buyers (FTBs) approval volumes and values reached their highest levels since the series began in 2014, up 12.8% and 21% respectively with values topping €1bn (€1,012m) for the first time in a one-month period. With almost 3,300 FTB mortgages approved in July, this means that about 106 FTB mortgages were approved per day during the month.”
“Mover purchaser activity also grew in the 12 months ending July 2024, with volumes up by 7.2%, the highest monthly volume since July 2021, and values up by 11.7% to €437m, the highest value since the series began.”
Mr Hayes said the report indicates robust mortgage activity with 49,384 mortgage approvals over the past year, of which 30,550 were FTB mortgages “signalling a particularly positive pipeline for FTB mortgage drawdowns. Furthermore, applications to the Revenue Commissioners for the Help to Buy scheme increased by 45% year on year in the first seven months of 2024 to almost 24,000 (23,902),” he said.
Despite the increase in mortgage approvals there remain significant challenges for first-time buyers in securing homes. A report this month from the Society of Chartered Surveyors of Ireland (SCSI) shows the dream of owning a standard three-bed home in Ireland is moving further out of reach of the average Irish couple.
They said a sample garda and nurse with 10 years of service on a combined income of €107,000 could not afford to buy a suburban three-bed home in Cork, Galway, Kildare or Wicklow.
There is also no let up in the price of homes. The most recent report from MyHome.ie shows average house prices in Ireland jumped a further 7.3% in the previous 12 months, the fastest rate of inflation growth in nearly two years.
