Busy January for first-time buyer loans and mortgage switching, says BPFI

Loans to first-time buyers hit their highest January level in at least 11 years last month, while remortgage or switch business also got off to a good start to the year, according to new figures from the Banking & Payments Federation Ireland (BPFI).

The volume and value of mortgages approved for first-time buyers had their best January since the start of the BPFI data series in 2011, which the industry body said indicated a “strong pipeline of ‘raffle activities’ over the coming year.

Remortgage and transfer activity increased 37% in volume and 48% in value compared to January 2021, also making it the highest January for volumes and transfer value since 2011 It was also the second highest overall transfer value since 2011.

Residential investment rental mortgage approvals – mortgages to let – are another category showing year-over-year growth, up 21% in volume and 43% in value year-on-year on the other.

“Our latest mortgage approvals data shows that mortgage approval activity performed well in January. We saw continued year-over-year growth in approval volumes and value , particularly among first-time buyers, with volumes up 9.3% year-on-year and values ​​up 17%,” said BPFI Chief Economist and Head of Prudential Regulation Ali. Ougur.

A total of 3,621 mortgages were approved in January 2022, with first-time buyers approved for 1,868 of them, or 51.6% of total volume, while movers accounted for 802, or 22.1. %.

The number of mortgages approved fell 6.1% month over month, but rose 7.9% from the same period last year.

Mortgages approved during the month were valued at €932m, of which FTBs accounted for €479m (51.3%) and movers €243m (26.1%).

The value of approvals in January was down 7.8% month-over-month, but was 13.2% higher than it was in January 2021.

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