Mortgage approvals fell in April as fewer movers and switchers secure loans

A decline in the numbers of people looking to switch mortgage provider or move home led to a decline in mortgage approvals in April, according to Banking and Payments Federation Ireland.

There were a total of 3,899 mortgages approved in the month, down 13.7% on a monthly basis and 9.4% lower year-on-year.

First time buyers represented the highest proportion of approvals at 2,417.

That figure was 14.2% lower than in March, but was up 5.3% on April 2022.

There were 877 approvals for movers, down 10% in the month and 5% lower year-on-year.

Meanwhile 283 approvals were made for customers looking to change mortgage provider.

That represents a 28.4% drop on March, and is 63.5% lower when compared to April 2022.

“Consistent with trends seen in recent months, switching activity reduced sharply again in April 2023 and accounted for only 7% of approval volumes, down from the most recent peak of almost 32% in October 2022,” said BPFI CEO Brian Hayes.

The value of mortgage approvals also fell on a monthly and annual basis, according to the BPFI data.

Approvals in the month were worth a combined €1.116 billion – down 14.3% in the month and 4.2% lower year-on-year.

Approvals for first time buyers were worth €701m – down 15% in the month but 10.5% higher year-on-year.

Mover purchases had approvals worth a combined €297m, down 7% in the month but 3.5% higher in the year.

Meanwhile customers looking to switch secured approvals worth a combined €73m, down 32.3% on March and 64.6% lower than in April 2022.

Article Source – Mortgage approvals fell in April as fewer movers and switchers secure loans – RTE

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