New figures show that the number of mortgages approved last month fell compared with June, though it was still higher than in the same month last year.

Banking & Payments Federation Ireland (BPFI) said that 5,255 mortgages were approved in July – down almost 12% from June, but up 4.4% compared with July 2021.

The annual increase, however, was driven by a jump in non-mortgage activity, which includes switching and top-ups.

Non-mortgage activity doubles

First-time buyers accounted for 45% of the total volume of mortgages approved last month, with movers representing 20%.

The value of mortgages approved in July was €1.45 billion – down almost 13% from June, but up 13% compared with July last year. Again, non-mortgage activity was mainly responsible for the annual increase, as the value of approvals in the other main categories dropped year-on-year.

The volume of non-mortgage activity almost doubled year-on-year to 1,741, while the value of these transactions jumped by almost 150% to €441 million.

Shopping around

BPFI chief executive Brian Hayes said that overall growth was being driven by non-purchase mortgages – mainly those who were re-mortgaging or switching.

He said that such activity had increased sharply since May, attributing the rise to competition in the market, and the fact that mortgage customers were shopping around for better rates.

“We welcome the fact that mortgage customers are actively taking steps to minimise the impact of the ECB’s planned interest rate increases, whether they switch to another mortgage lender or renegotiate with their current lender,” Hayes stated.