The value and volume of mortgage approvals hit new highs in the 12-month period to the end of August, despite a drop in activity last month, according to figures from Banking and Payments Federation Ireland (BPFI).

It said that just over 54,200 mortgages were approved in the 12-month period, valued at almost €13.4 billion. These were the highest annual figures recorded since BPFI began compiling the data.

In August alone, almost 4,600 mortgages were approved – down 9% from July, but 18% ahead of August last year.

FTBs take half of market

August’s mortgages were worth almost €1.2 billion – a fall of almost 10% compared with July, but up almost 23% from August last year.

First-time buyers (FTBs) again accounted for just over half of the mortgages approved in July, with movers taking a quarter of the market.

“Approvals activity often peaks during the summer, but the latest mortgage approvals for August show continued growth compared with 2020, especially for FTB mortgages,” said the BPFI’s chief economist Ali Uğur.