"The drop in would-be movers, who own a home but are looking to either move to somewhere bigger or downsize, fell more sharply, down 16.8pc year-on-year in August. Those movers who did get a loan are looking to borrow more, an average of €384,887, compared with the €325,934 average for first-time buyers. The slowdown among movers combined with the lack of new housing completions points to a further strain on supply for first-time buyers."
"BPFI chief executive Brian Hayes said the data represented somewhat of a slowdown in mortgage approval activity, even as overall mortgage values continued to rise. "At the same time, mortgage switching continued to grow, up 13.8pc in volume and 30.4pc in value year-on-year. The number and value of top-ups, which include both further mortgage advances to existing mortgage borrowers as well as equity releases on properties without a mortgage, reached their highest annualised levels since the data series began," he said."
Mortgage approvals in the 12 months to August reached a record €16.7bn, with first-time buyers borrowing €10.4bn. Home-purchase mortgage approvals fell 5.1% year-on-year in August, while approvals for owner-movers fell 16.8% year-on-year. Movers who received loans borrowed an average €384,887, versus €325,934 for first-time buyers. A total of 4,536 mortgages were approved in the month, including 2,822 for first-time buyers and 825 for movers. Including top-ups, buy-to-lets and switching, approvals fell 17% month-on-month and 2.5% year-on-year. Mortgage switching and top-ups increased, and low mover activity combined with weak housing completions tightens supply for first-time buyers.
Read at Irish Independent
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