Figures from Banking & Payments Federation Ireland (BPFI) show that almost 11,500 mortgages worth just under €2.8 billion were drawn down in the third quarter of this year.

In volume and value terms, these figures represent increases of just over 40% compared with the same period last year.

The number of drawdowns was also almost 20% higher compared with the previous quarter, while the value of mortgages was up almost 25% compared with the second quarter of this year.

First-time buyers (FTBs) accounted for just over half of the drawdowns, in volume and value terms.

Second-hand surge

The BPFI figures show, however, that new properties – including self-builds – accounted for just over a quarter of mortgages in the third quarter. This was a sharp fall from the 38% recorded in the same quarter last year.

The banking body’s chief executive Brian Hayes (pictured) said that the impact of COVID-19 restrictions could be seen in the type of properties on which mortgages were being drawn down.

He pointed out that mortgage drawdowns on second-hand properties grew at much faster annual rates – almost 58% by volume, and more than 70% by value.

“This underlines the severe limitations we have seen on the construction industry during the pandemic, which is having a clear impact on supply,” he added.

Switcher record

BPFI figures for September show that almost 4,800 mortgages were approved during the month, with FTBs making up more than 55%.

The September figure was up 4.3% compared with August, and 3.2% compared with the same month last year.

Mover purchasers represented almost a quarter of the total, and Hayes said that the 7,000 switcher mortgages approved in the year to September was the highest annualised level on record.

Mortgages approved in September were worth just over €1.2 billion – of which FTBs accounted for 55%, and mover purchasers almost 28%. The value of mortgage approvals rose by 3.9% month-on-month, and by 7.5% year-on-year.