Nearly 12,000 mortgages with a total value of €3.1bn were drawn down by borrowers in the second quarter, according to Banking & Payments Federation Ireland (BPFI)
The 11,985 drawdowns between April and June 2022 represents an increase of 24.5% from the same period a year ago, while the value of drawdowns in Q2 rose 40.6% year-on-year, reflecting annual price inflation of 14.4% in the housing market.
First-time buyers remain the largest purchasing segment in terms of both volume (50%) and value (50.4%).
The BPFI also released mortgage approval figures for June, with a total of 5,960 mortgage authorised last month, including 2,675 for FTBs (44.9%) and 1,185 for mover-purchasers (19.9%).
The number of mortgages approved in June rose 11.3% from May and 14.5% from June 2021, and the value totalled nearly €1.7bn, of which FTBs accounted for €740m (44.2%) and mover-purchasers made up €400m (24.1%).
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The value of mortgage approvals rose by 14.6% month-on-month and by 30.6% year-on-year, the BPFI said.
Switcher mortgage volumes, meanwhile, grew by 74.3% year-on-year to 2,600. In June there were ,790 mortgage switches approved, representing annual increase of 153%.
Boosted by increased switching activity, the number of mortgage approvals in the year ending June 2022 reached 55,470, the highest level recorded since the data series began in 2011.
"The mortgage market continues to grow at a pace, with many potential mortgage holders more concerned by the need to find a home than by the cost-of-living inflation or mortgage interest rate rises. The volume of applications from first-time buyers continues to grow month on month," commented Trevor Grant, chair of the Irish Association of Mortgage Advisors.
"One of the biggest drivers of activity in the mortgage market is the increase in the number of those looking to switch, mainly looking to lock into a low rate/flexible fixed rate products."
"While there may be some merit in certain homeowners moving from a tracker to a fixed rate (depending on their margin over ECB), we would caution those mortgage holders that this advice cannot be applied to everyone on a tracker rate."
(Pic: Getty Images)
