Strong demand from first-time buyers (FTB) and switching activity drove an increase in both the volume and value of mortgage drawdowns in the third quarter.
A total of 11,774 new mortgages worth €3.4bn were drawn down by borrowers during the period, according to the latest figures from the Banking and Payments Federation Ireland (BPFI).
In volume terms this represents a rise of 1.4% and 7.4% in value compared to the same timeframe last year.
But when compared to the April to June period of this year, the volume of loans drawn down was up 16.5% while in value they were up 19.4%.
“This growth was mainly driven by high FTB volumes, which comprised almost 60% (59.8%) of all drawdown volumes, as well as rising switching volumes, up 26.1% compared to the same quarter last year,” said Brian Hayes, Chief Executive, BPFI.
“In fact, switching increased in both volume and value terms for the first time since Q1 2023.”
In total over 7,000 first time buyer mortgages were drawn down and these were valued at almost €2.1 billion.
The data also shows that drawdown volumes on new properties including self-builds increased by 14.7% compared to the same period last year to 3,000.
That was the highest third quarter level since the third quarter of 2008 and was propelled mainly by a rise in first time buyer mortgages which rose by 18.8%.
“Meanwhile, looking at the latest mortgage approval figures for September, approvals increased across all customer segments when compared to the previous year, most notably in switching, which was up by 19.1% in volume terms,” said Mr Hayes.
“In annual terms 49,784 mortgages were approved.”
“FTB volumes also remained high with 30,673 FTB mortgages approved over the past 12 months to September 2024, the third highest annualised level since the series began in 2011.”
The BPFI boss added that overall mortgage demand remains robust with approvals indicating a strong pipeline for first time buyer drawdowns in particular, in the fourth quarter of this year and early part of next year.
Article Source: First time buyers and switchers drive increase in Q3 mortgage drawdowns