MORTGAGE DRAWDOWNS FOR first-time buyers reached their highest level since 2007 last year, a new Banking and Payments Federation of Ireland (BPFI) report has stated.
The average first time buyer drawdown increased to €282,084, up from €264,621 in the previous year.
Overall mortgage activity slowed down in 2023, but almost 26,000 first time buyers made drawdowns over the course of the year.
In the fourth quarter of 2023, 11,584 mortgages were drawn down by borrowers, which is a decrease of 27.1% on the previous quarter.
First time buyers remained the single largest group drawing down mortgages by volume (62.7%) and by value in the last quarter of the year.
The number of mortgages approved in December fell by 33.5% month on month, and by 23.3% year on year.
Re-mortgaging and switching activity fell by 68.6% in 2023 compared to the previous year, and by 71.8% in terms of value.
The Chief Executive of BPFI Brian Hayes said the latest mortgage data shows another “strong year for first-time buyers” who “dominated” the market.
However he added that overall there has been a decrease in mortgage drawdown and approval activity, which has been driven largely by a sharp decline in the number of people remortgaging and the number switching mortgage providers.
Mr Hayes said that looking ahead to 2024, the BPFI expects housing and mortgage demand to remain strong, despite the expected slowdown in Irish economic growth.
He added that housing output has increased “significantly” in the last two years, and the potential output for 2024 “looks encouraging”.
“Increasing supply should also help average property price inflation ease during the year,” he added.
To embed this post, copy the code below on your site
have your say