Figures from the main banks show that there was a sharp drop in mortgage drawdowns in October compared with the same month last year.

Banking Payments Federation Ireland (BPFI) said that banks approved 4,273 mortgages last month – just over 60% for first-time buyers (FTBs). Mover purchasers accounted for just over 20% of the market.

The October approvals figure fell by just over 20% compared with a year earlier, though it was up 2.7% on the September figure.

FTB mortgage value climbs

Mortgages approved in October were valued at just over €1.2 billion – down almost 17% compared with a year earlier, but up 2.7% on September’s figure.

FTBs accounted for almost two-thirds of the total value of October mortgages approved.

BPFI said that the average value of an FTB mortgage had climbed by €27,000 over the past 12 months to €295,033 in October, reflecting higher house prices.

Pipeline

Year-on-year, re-mortgaging or switching activity fell by 78% in volume terms and by more than 80% in value.

BPFI Chief Executive Brian Hayes (pictured) said that, while an overall slowdown in mortgage activity had continued in October, FTBs were defying the overall trend, with FTB volumes and values having grown in nine out of the ten months of 2023.

“Looking ahead, while the pipeline for drawdowns remains solid to the end of 2023, continued supply of new and second-hand housing will be needed to meet robust demand in 2024,” he concluded.