Record high €8.8bn first time buyer mortgages approved in November

First-time buyers represented more than 61 per cent of the total volume of mortgages during November.

The number of first-time buyers being approved for mortgages hit historic levels at the end of last year, new data from the Banking & Payments Federation Ireland (BPFI) has shown.

The trend has come amid an overall slowdown in mortgage activity. In November 2023, a total of 4,202 mortgages were approved, which represented a year-on-year decline of 22.7 per cent and month-on-month decrease of 1.7 per cent.

First-time buyers represented more than 61 per cent of the total volume of mortgages during the month, which meant that 30,550 first-time buyer mortgages were approved in the 12-month period up to the end of November.

Brian Hayes, chief executive of the BPFI, said approvals mean first-time buyers’ mortgages “reached historic highs once again” valued at more than €8.8 billion.

“The highest volume and value since the series began in 2010. This reflects sustained upward first-time buyer trends throughout most of 2023,” he said.

“The values of first-time buyer approvals rose by 8.6 per cent reflecting higher housing prices as the average first-time buyer mortgage value reached €294,836, some €19,000 more than in November 2022 (€275,957) and the second highest value recorded since our data series began.”

Hayes added that in the coming months, there may be a “moderation in the growth” of first-time buyer approvals.

The latest figures from the BPFI Mortgage Approvals Report for November 2023 showed the overall value of mortgage approvals fell by 0.5 per cent month-on-month and declined by 19.4 per cent year-on-year.

The total value of mortgages approved in November was €1.208 billion, with first-time buyer accounting for €759 million of that amount. Mover purchasers represented €317 million, or 26.2 per cent, of the total.

Re-mortgage and switching activity in the mortgage market decreased by 75 per cent in volume terms year-on-year.

Hayes said the wider slowdown in the mortgage market has been largely driven by lower switching levels.

“However, mortgage activity has remained very strong in the past year with 50,470 mortgages valued at almost €14.4 billion approved in the twelve months ending November.”

Source: Killian Woods, Business Post 09/01/2024