Mortgage approvals for first-time buyers remains strong despite wider slowdown

Muireann Duffy

Mortgage approvals for first-time buyers (FTBs) remained strong in April despite a general decline across the sector.

The latest figures from Banking and Payments Federation Ireland (BPFI) show mortgage approvals by volume fell 13.7 per cent month-on-month, while they were down 14.3 per cent in of volume over the same period.

On an annual basis, volume fell 9.4 per cent and value declined by 4.2 per cent.

However, the FTB sector performed better, showing a 5.3 per cent annual increase in the number of mortgages approved.

Of the 3,899 mortgages approved in April, FTBs ed for 62.3 per cent, while mover purchasers made up 22.5 per cent.

April's mortgage approvals totalled €1,116 million, 62.9 per cent (€701 million) was for FTBs.

Remortgaging and switching activity noted a heavy annual decline of 63.5 per cent in volume , or 64.6 per cent in of value.

"Our latest mortgage approval figures point to a continued slowdown in the market across almost all customer segments with the exception of FTB approvals," BPFI chief executive Brian Hayes said.

"Despite the overall slowdown, however, mortgage activity remains at historically high levels with almost €1 billion in approvals for FTBs and mover purchasers in April."