Mortgage Approval Rates Reach An Eight-Year High

The number of potential home owners being approved for a mortgage has hit an eight-year high.

A total of 5,129 mortgages, valued at €1,162 billion, were given the go ahead last month, marking the first time the figure has exceeded €1bn since 2011.

Over half (51.6%) were for first-time buyers (FTBs), while mover purchases accounted for 1,424 (27.8%) of approvals with the total amount rising by 14.5% month-on-month and 21.5% year-on-year.

Re-mortgage/switching approvals also continued to show growth in volume of 8.9% on the previous month and of 4.8% year-on-year.

The data was revealed by the Banking & Payments Federation of Ireland. Commenting on the figures, Chief Executive Brian Hayes stated: "The strong growth in approvals for house purchase – both first-time buyers (FTB) and mover purchasers – is particularly notable from the July figures. In fact, since our data series began in 2011 this is the first time the monthly value of house purchase approvals has exceeded €1 billion.

"First-time buyers continue to represent the single largest segment of the market by far, with almost 14,900 approvals valued at almost €3.5 billion in the year to date. These approval figures point to a good pipeline of mortgage drawdown activity."


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