Wednesday 17 July 2019

Mortgage approvals jump 9.5pc in April - new figures

(stock photo)
(stock photo)
John Mulligan

John Mulligan

Mortgage approvals jumped 9.5pc in April, with €931m of new loans approved in the month, according to new figures released this morning.

And in the three months to the end of April, the approval rate was 13pc higher compared to the corresponding three months last year.

The bounce has been attributed to increased activity in the first-time buyers’ market.

Data from the Banking and Payments Federation Ireland (BPFI) show that mortgage approvals rose 9.5pc in April in both volume and value terms. It confirmed that the value of the approved mortgages was €931m.

The data shows that 4,109 mortgages were approved in April, with just over 51pc of those for first-time buyers. Movers accounted for slightly more than 26pc of the approvals.

While the number of mortgages approved fell by 0.8pc month-on-month, they were 9.5pc higher year-on-year. The value of the mortgage approvals was up 1pc in April compared to March, and 10.5pc higher compared to April last year.

Felix O’Regan, the BPFI’s director of public affairs, said that the increase in the value of approvals in April compared to April 2018 was the strongest rate of growth since October 2017.

Dermot O’Leary, the chief economist at Goodbody Stockbrokers, said that due to volatility in terms of approvals, the trends are better analysed on a three-month basis.

"On this measure, mortgage approvals grew by 13pc year-on-year by volume and by 14pc year-on-year by value [in April]," he said.

He added that the figures for bode well "for a recovery in house purchases after a relatively lacklustre start to the year."

There were 46,901 mortgage approvals in the 12 months to the end of April, valued at €10.4bn.

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