New data published by the Banking & Payments Federation Ireland (BPFI) shows that mortgage approvals in Ireland continued their upward trend in January.
  
The volume of mortgage approvals grew by 12% year on year (yoy) in January. With the average mortgage size increasing by 8% yoy, this translates into growth of 20% yoy in the value of approvals. In the three months to January, the value of approvals grew by 15% yoy (+8% by volume). 
  
The figures show that First Time Buyers (FTBs) and mover-purchasers continue to dominate overall new mortgage lending, accounting for 81% of approvals by value in January. Approvals for FTBs grew by 19% yoy in January, while approvals for mover-purchasers grew by 10% yoy (by value). The fastest-growing component of new lending in January was re-mortgaging (+76% yoy by value). 

In the most recent three months, remortgaging accounted for 12% of new lending. With greater levels of competition on mortgage pricing and rising levels of equity, this share is likely to rise further.  
  
According to Goodbody Stockbrokers, "We are forecasting new mortgage lending to grow by 20% in 2018, leading to net mortgage lending growth of 1.1% yoy. These latest trends are in line with this view. Key in achieving these forecasts will be ongoing growth in new housing supply, which, we estimate, needs to treble over the coming years to catch up with
medium-term household demand."

Source: www.businessworld.ie