New mortgage approvals fall for the primary time in seven years

The variety of mortgage approvals fell in February for the primary time in seven years.

The newest figures from the Banking & Funds Federation Eire (BPFI) present {that a} whole of three,378 mortgages have been accepted in February 2023.

First-time consumers (FTBs) have been accepted for 1,877 mortgages (55.6% of whole quantity) whereas mover purchasers accounted for 801 (23.7%).

This was down 8.6% from the earlier month and by 13.3% in contrast with the identical interval final 12 months, whereas the worth of mortgages was additionally down, by 6.9% on January’s figures and by 8.1% in comparison with February 2022.

The earlier fall in 2016 was prompted by the introduction of the Central Financial institution’s lending limits.

Of the €945 million accepted in mortgages final month, 55.9% was for FTBs (€528 million) and 27.9% (€263 million) for movers.

Non-purchase exercise, corresponding to mortgage switching or top-ups, additionally fell 30.9% by way of quantity on the identical interval final 12 months, and by 32.6% (€144 million) by way of worth.

“Whereas our newest figures present a slowdown in approvals throughout nearly all buyer segments in quantity and worth phrases, it’s important that we have a look at this within the context of the numerous decline we’re seeing in switching exercise,” BPFI’s chief govt Brian Hayes mentioned.

“In February, non-purchase mortgage approvals, primarily made up of switching, fell by nearly 31 per cent in quantity phrases year-on-year and this decline has had an affect on the general slowdown we’ve seen on this month’s figures.

“This fall off was anticipated given the substantial wave of switching undertaken by clients in current months with nearly €4.3 billion in new non-purchase approvals (primarily switching) within the twelve months ending January 2023.”

Mr Hayes added that regardless of final month’s slowdown, mortgage exercise stays at “traditionally excessive ranges”, and demand stays significantly robust amongst FTBs.