Huge surge in numbers getting approved for mortgages
THERE has been a surge in the number of people getting approved for a mortgage, new figures from the banks shows.
But many of these people being approved for a mortgage are competing hard with each other for the few houses that are available and are unlikely to end up drawing down the mortgage, experts said.
Close to 3,000 people got mortgage approval in August to buy a home, a rise of 37pc on the same month last year, according to figures from the Banking and Payments Federation Ireland.
This was made up of first-time buyers and those moving from an existing home they own.
The value of the mortgages approved rose by 50pc to €595m in August, compared with the same month last year.
Experts said there has been a jump in mortgage approval levels in the past few months.
Mortgage approvals have risen to €1.8bn in the last three months, up 33pc on the year.
But economist with Davy Stockbrokers Conall Mac Coille said people with the green light to borrow were chasing a limited number of properties for sale.
“The worry is that growing numbers of buyers are now chasing too few homes, with numbers of properties listed for sale falling and weak housing construction,” he said in a note to investors.