Number of mortgages approved fell 5.9% in April from previous month

The number of mortgages approved fell 5.9 per cent in April compared with March and by 1.3 per cent compared with the same period last year, figures from the Banking & Payments Federation Ireland (BPFI) show.

The latest data from the BPFI Mortgage Approvals Report for April shows a total of 4,304 mortgages were approved in April. First-time buyers (FTBs) were approved for 2,296 mortgages (53.3 per cent of total volume) while mover purchasers accounted for 923 (21.4 per cent).

Mortgages approved in April were valued at €1.6 billion, of which FTBs accounted for €635 million (54.5 per cent) and mover purchasers for €287 million (24.7 per cent).

The value of mortgage approvals fell 3.7 per cent month on month and rose 6.9 per cent year on year.

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Remortgage/switching increased 37.2 per cent in volume terms year on year to 775, and by 43.1 per cent year on year to €206 million over the same period.

BPFI chief executive Brian Hayes said the figures should be viewed in the context of recent historically high levels in the market.

“It’s not unexpected to see some dips like we have during April,” he said.

“More than 54,000 mortgages were approved in the 12 months ending April 2022, with more than 29,000 going to FTBs alone. These are still close to the highest levels seen since the data series began in 2011.

“Mortgage-switching figures, meanwhile, remain high reflecting both the competition in the market and the fact that mortgage customers continue to shop around for better rates.

“As we look ahead, what is certain is that we have a very strong pipeline of approvals ensuring the outlook is positive for drawdowns as we progress through the year.”

Separately, the latest doddl.ie Mortgage Switching Index for the first quarter has found homeowners should consider swapping their short-term fixed mortgage rates for longer-term options to insure themselves against shock increases in repayments when their current deal ends.

Mortgage switching activity has jumped 33 per cent year on year, it found, fuelled by an expectation that rates would increase this year.

“The risk for those on short-term fixed rates is that if they roll out of their fixed term contract in 12 or 24 months, rates could be considerably higher,” says Martina Hennessy, managing director of doddl.ie.

As household costs rapidly rise, homeowners could be needlessly paying an average €4,388 in extra mortgage repayments per year by not switching lenders, the index found.