THE NUMBER OF mortgages drawn down in the first three months of this year has decreased by over 30% when compared with the last three months of 2022, according to two reports published today by the Banking and Payments Federation Ireland (BPFI).

A total of 10,908 new mortgages to the value of €2,868 million were drawn down by borrowers during the first quarter of 2023. 

This represents an increase of 10.1% in volume and 14.1% in value on the corresponding first quarter of 2022. 

However, a comparison with the previous quarter, the last three months of 2022, shows a decrease of 31.3% in volume and 34.1% in value. 

First-time buyers (FTBs) remained the single largest segment by volume (50.8%) and by value (51.1%). 

Re-mortgage/switching volumes and values rose by 22.5% and 25.3% year-on-year respectively, but fell by 52.1% and 53.7% on the previous quarter. 

A total of 4,520 mortgages were approved in March 2023 – some 2,801 were for FTBs (62% of total volume), while mover purchasers accounted for 1,019 (22.5%).

The number of mortgages approved in March rose by 33.8% month-on-month and fell by 1.2% year-on-year.

Mortgages approved in March 2023 were valued at €1,301 million – of which FTBs accounted for €819 million (62.9%) and €332 million by mover purchasers (25.5%).

The value of mortgage approvals rose by 37.7% month-on-month and 7.7% year-on-year.

Re-mortgage/switching activity fell by 54.4% year on year in volume terms and by 53.1% in value in the same period.

“Our latest mortgage figures show that in terms of mortgage drawdowns, demand remains strong with 10,908 new mortgages to the value of €2.9 billion drawn down by borrowers during the first quarter of 2023,” BPFI chief executive Brian Hayes said. 

“However overall, the figures point to a continued year on year slowdown as the impetus from switching decreases. Mortgage approval volumes in March fell by 1.2% year on year while switching volumes dropped by 54.4%,” Hayes said. 

“It is notable nonetheless, that trends in the home buyer segments remain positive. First-time buyer and mover purchase drawdown volumes reached their highest Q1 levels since 2007 and 2008, respectively,” he added.

“Looking forward, FTB approval volumes rose by 15.7% year on year with FTBs accounting for 62% of approval volumes, the highest share since data became available in July 2014.”