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Tuesday 14 August 2018

April sees jump in number of mortgage approvals

Photo: Stock Image
Photo: Stock Image
Charlie Weston

Charlie Weston

THE number of people being approved for a mortgage jumped in April, reversing a fall in the previous month.

A total of 3,751 mortgages were approved in April.

Almost half of these were first time buyers.

There had been a fall in approvals in March, which was blamed on the weather, but the Banking and Payments Federation Ireland figures show a 14pc rise in April.

The average mortgage approval amount was €238,000, a rise of 6pc on the same month last year.

Analysts said half of rise was down to house price growth and half was due to more buyers being in the market.

First-time buyers got the go-ahead to borrow €225,000 on average, up almost 8pc on a year ago.

The average mover purchase approval rose by 1.7pc year-on-year to €258,533.

Analyst with Davy Stockbrokers David McNamara said it was notable there has been a moderation in growth in the average loan value.

“This is a harbinger of more subdued house price inflation in the coming months.”

He said that this is no surprise given that loan-to-income ratios are now butting up against the Central Bank’s lending limits in Greater Dublin and exemptions for loans above the limit have been restricted since January.

The limits mean people cannot borrow more than three and a half times their income.

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