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Rise in April mortgage approvals, reversing trend of first quarter

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THERE has been a rise in the number of mortgage approvals in April compared with the same month last year.

This reverses the trend of the first three months of the year.

A total of 1,433 mortgages to a value of €240m were approved by lenders during the month of April.

This is up 9pc on the same month last year, and up 23pc on the figures for the previous month.

Approval for a mortgage means that a lender is prepared to advance the money, but the funds may not end up being drawn down if buyers cannot find a property at a price that is within their budget.

The vast majority (91pc) of approvals were for house purchase.

There had been a sharp fall in mortgage approvals in the first three months of the year, with experts blaming the ending of mortgage tax relief in December for this. 

Director of Public Affairs, Felix O’Regan, stated: “The increase in the number of new mortgage approvals recorded in April is welcome evidence of renewed activity in the mortgage market, a pattern which first emerged during the latter part of last year.

“Following a more recent slowdown in activity in the first quarter of this year - due to seasonal factors and the expiration of mortgage interest relief - the latest approvals figures provide a firm indication of underlying growth in the market.”

Online Editors