According to new figures from the Banking & Payments Federation Ireland, over 7,000 first-time buyer (FTB) mortgages were drawn down in Q3, with a value of almost €2.1bn.
Drawdowns for mortgage switching increased both in volume, by 26pc, and in value, by 28pc, for the first time since Q1 of last year. Overall, a total of 11,774 new mortgages to the value of €3.4bn were drawn down by borrowers in the third quarter. This was up 1.4pc in volume, and up 7.4pc in value, on the same time period last year.
First-time buyers remained the single largest segment both by volume, at almost 60pc, and by value, at 61.4pc.
Brian Hayes, chief executive of BPFI, noted that while drawdown volumes continued to grow in the last quarter, it was at a slower rate.
In relation to property types, he said: “Home-mortgage drawdown volumes on new properties (including self-builds) increased by 14.7pc year on year in Q3, with more than 3,000 mortgages on new properties, the highest third- quarter level since Q3 2008.
“This increase was driven mainly by an increase in FTB mortgages on new properties which rose by 18.8pc to 2,489, signalling continued momentum in new home building.”
The BPFI figures for the month of September show that a total of 4,445 mortgages were approved, with almost 60pc of them for first-time buyers. Move purchasers accounted for about 23pc of the approvals.
The figure for September was down 4.4pc month on month, but up 6.8pc year on year. The total value of mortgages approved last month was €1.3bn, of which first-time buyers accounted for €812m, and mover purchasers €352m.
Commenting on the approval figures for September, Mr Hayes said they had increased across all customer segments when compared with the previous year, most notably in switching, which was up by just over 19pc in volume terms.
“In annual terms, 49,784 mortgages were approved. FTB volumes also remained high with 30,673 mortgages approved over the past 12 months to September, the third highest annualised level since the series began in 2011,” he said.
The increase in mortgage-switching activity reflects significant interest-rate reductions by several lenders since May, according to Martina Hennessy, the chief executive of Doddl.ie. She said the disparity across rates in the market, from 3.2pc to 6.4pc, has encouraged more mortgage holders to save on their interest payments by switching.
“Those who can save significantly are mortgage holders with lower loan-to-value (LTV) ratios, homes with positive building energy ratings, and those with balances over €250,000 who are eligible for lower mortgage rates,” Ms Hennessy said.
“Lower LTVs, particularly under the 80pc threshold, often unlock rate reductions of up to 0.55pc. Latest CSO figures show a 9.6pc increase in property values year-on-year to July. This means that someone who purchased over 12 months ago, with a 10pc deposit, now has a LTV ratio of 80pc. Additionally, for homeowners in energy-efficient properties, green rates, starting at 3.2pc, remain the lowest on the market.”
