The average third-quarter mortgage exceeded the market peak in 2008

The average mortgage stood at €284,623 in the third quarter of the year, surpassing the levels seen during the market peak in 2008 when it was €268,220.

“This is due to high house price inflation and the ongoing supply challenge in the housing market,” said Brian Hayes, chief executive of Banking & Payments Federation Ireland.

According to the latest figures from BPFI, growth in mortgage approvals and drawdowns continued in the third quarter of this year.

The report shows growth was driven by another jump in mortgage switching. No-purchase mortgage activity, which includes transfers and reloads, increased 115.8% in volume year-on-year to 5,081 and 175.8% year-on-year to 1.29 billion euros over the same period.

Mr Hayes said this reflects the fact that mortgage customers are looking for better rates following recently announced interest rate increases by the ECB.

The September approvals numbers, however, show that the mortgage pipeline for buying a home is weaker than at the start of this year.

A total of 14,851 new mortgages worth €4.05 billion were drawn down by borrowers in July, August and September, representing an increase of 29.4% in volume and 45.7 % in value compared to the corresponding third quarter 2021.

First-time buyers remained the largest segment in volume (44.3%) and value (43.9%). “Interestingly, when we look at the types of properties purchased, we can see that FTBs have come to dominate the new build/self-built market, accounting for 78.2% of the value of home mortgages on new properties in the third quarter of 2022,” Hayes said. .

The average value of mortgage levies for home loans, at €284,623, again set new records. The average FTB mortgage levy rose to €270,568 in Q3 2022 from €243,271 a year earlier, while the average mover purchase levy rose to €315,463 from €284,836 over the same period.

In addition, BPFI also released the latest figures from the BPFI Mortgage Approvals Report for September 2022, which show that a total of 5,350 mortgages were approved in September 2022 – some 2,460 were FTBs (46%) of total volume) while buyers of movers accounted for 1,063 (19.9%).

The number of mortgages approved in September fell 3.5% month-on-month and increased 12.2% year-on-year.

Mortgages approved in September 2022 were valued at €1.47 billion – of which FTB accounted for €665 million (45.2%) and €345 million by buyer movers (23.4%).

The value of mortgages approved in September fell 3% month-over-month and increased 22.1% year-over-year. No-purchase mortgage activity, which includes transfers and reloads, grew 98.7% in volume year-over-year to 1,717 and 140.2% year-over-year another at 443 million euros over the same period.

Carol N. Valencia