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November shows highest month of mortgage approvals on record

Written by Robert McHugh, on 22nd Dec 2020. Posted in Ireland

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The Banking & Payments Federation of Ireland (BPFI) has today published the latest figures from the BPFI Mortgage Approvals Report for November 2020. 

A total of 5,198 mortgages were approved in November 2020 – first-time buyers (FTBs) were approved for 2,826 mortgages (54.4% of total volume) while mover purchasers accounted for 1,373 (26.4%).

The number of mortgages approved fell by 0.2% month-on-month and rose by 24.3% compared with the same period last year. Mortgages approved in November 2020 were valued at €1,281 million – of which FTBs accounted for €692 million (54.1%) and mover purchasers for €388 million (30.3%).

The value of mortgage approvals rose by 2.2% month-on-month and by 33.3% year-on-year.

Interestingly, November saw solid growth in mover purchase activity which was, in part, driven by a significant increase in the average mortgage approval – the average mover purchase approval exceeded €280,000 for the first time at €282,443. 

And even though mortgage approvals are down by 15% in volume terms and 9.9% in value terms in the year to date, BPFI say the continued strong activity in November represents a robust pipeline for drawdown activity which we are likely to see coming through in the coming months.

According to Goodbody Stockbrokers, "The Irish housing market has shown incredible resilience in 2020, especially in the second half of the year. With a vaccine hopefully becoming widely distributed towards the middle of next year, and a strong recovery expected to take place in the wider economy, the housing market should only improve further. The key now will be to see whether supply can catch up with the increasing demand."

Source: www.businessworld.ie

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