Thursday 18 October 2018

Some 40,000 approved for a mortgage in the last year

Photo: Stock
Photo: Stock
Charlie Weston

Charlie Weston

MORE people are getting approved to take out a mortgage despite the shortage of properties to buy.

New figures show more than 40,000 people got approved to take out a mortgage in the year up to November.

This was up 25pc on the same period last year, according to the Banking and Payments Federation.

In November there was a rise of 7pc in the numbers cleared to take out a mortgage to close to 4,000.

Almost half of the approvals were for first-time buyers, with mover-purchasers accounting for almost a third.

The value of all mortgages approved in November was €867m, some 15pc higher than the same month in 2016.

However, this was the slowest rise in the value of new approvals since March 2016.

Based on the latest figures, analyst with specialist bank Investec Owen Callan said he now expects mortgages to the value of €7.4bn to be drawn down this year.

Goodbody Stockbrokers’ Dermot O’Leary said the slowdown in the rate of growth in mortgage approvals in November, compared with the previous year, could be attributed to the fact that last year there were fears of tightening in Central Bank mortgage rules which caused strong growth in applications for mortgages November last year.

“Overall, this has been a year of strong growth in new mortgage approvals in Ireland, with the number of approvals up by 25pc year on year and the value growing by 36pc year on year,” Mr O’Leary said.

The number of switchers more than doubled between March 2016 and November 2017, increasing to 3,545.

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