The number of mortgages approved rose by 57.5 per cent for the three months ending January 31st compared to the same period a year earlier, according to new figures published on Friday.
New data from the Banking and Payments Federation Ireland (BPFI) show approvals were down 10.1 per cent compared to the final three months of 2014.
The report notes that mortgage activity typically drops off in January of each year, with the drop-off in January ranging between 9.8 per cent and 16.2 per cent over the past four years.
A total of 2,500 mortgages were approved per month, on average, in the three months, of which 92 per cent were for house purchase.
The value of mortgage approvals increased by 70.9 per cent year-on-year but was down 8 per cent compared to the final three months of 201.
Some €470 million in mortgages was approved per month in the three months ending January. The value of house purchase mortgage approvals grew by 66.4 per cent year-on-year to €441 million.
The average mortgage approval value in the three months ending January 2015 was €188,000, up 8.3 per cent year-on-year. The average mortgage for house purchase rose by 7.1 per cent to €192,073.
The BPFI said the continued sharp rise in the average remortgage/ top-up value reflected a significant increase in re-mortgage activity. The average remortgage is typically much larger than the average top-up, it said.
The report notes that mortgage activity typically drops off in January of each year, with the drop-off in January ranging between 9.8 per cent and 16.2 per cent over the past four years.
Goodbody said distortions caused by new Central Bank measures for first-time buyers make it difficult to decipher the underlying growth in the mortgage market. However, Goodbody economist Dermot O’Leary said he expected 2015 to be a year of two halves in terms of activity.
“We remain of that view, with drawdowns in the first half being propelled by the momentum in approvals over recent months. The second half may be a different story. Next month’s approval data will be the first piece of evidence on the effect of the new mortgage regime. We are forecasting 29 per cent growth in new lending in 2015 to €5 billion,” he said.
