More than 60 first-time buyers get approved every day for €218k mortgage Dublin Cork

Figures show first-time buyers now account for 50% of approvals as rising prices drive up average mortgage loan
Fiona Reddan


Every day in October, some 62 first time buyers got approval for a mortgage worth an average of €218,000, new figures show, which also reveal that while the rate of growth in mortgage approvals has slowed, the market remains on an upward trajectory.

According to figures from the Banking and Payments Federation of Ireland (BPFI), some 3,751 mortgages were approved in October 2017, at a value of €834 million, up by 20 per cent in volume terms, and by 35 per cent in value. According to Philip O’Sullivan, economist with Investec, rising house prices account for just over a third (37%) of the increase in the overall approval value.

The figures show that the average value of an approved loan was € 215,000 (€264,134 for trader uppers), up by 10 per cent on the same period in 2016. First-time buyers are very much driving growth, with approvals up by 30.7 per cent in the year to 1,911, accounting for about 51 per cent of all approvals

Dermot O’Leary, economist with Goodbody Stockbrokers, now expects mortgage lending to hit € 7.3 billion this year, up by 28 per cent on last year, and € 8.6 billion in 2018, “with net lending to also turn positive over the period”. O’Sullivan, economist with Investec, is a little more bullish, forecasting total drawdowns of €7.4 billion this year, and €9.1 billion next year.

The figures show that the fastest growing segment on an annualised basis was switching, as property owners look to move lender to save money in an increasingly competitive market. However, while volumes more than doubled between January 2016 and October 2017, the overall numbers remain low, with just 321 people switching in October of this year. Moreover, the numbers are actually down on an annual basis; down by 8.7 per cent in value and by 7.8 per cent in volume terms.

Investors are also slowly gearing up, with buy to let mortgages up by 22 per cent on the year; however they remain very low, with just 181 such mortgages approved in October.

As negative equity continues to ease, those looking to trade up or down are also on the rise, with mover purchase approval volumes up by11.3 per cent on the year to 1,132, accounting for 30 per cent of all mortgages.

Lending rules

The Central Bank is set to publish a review of its mortgage lending rules today. First introduced in February 2015, the rules restrict borrowers to borrowing 3.5 times their income, and 80 per cent of the purchase price for second time buyers, although exemptions are allowed.

While the regulator did soften the rules last year, further changes are not expected. Mr O’Leary said he would be “ very surprised” if further changes were made.

Source:     28/11/2017
If you are interested in getting a mortgage and would like to speak to us at please don’t hesitate to contact us at in Cork +353 21 4277037 or 353 86 8060601
MyMortgages Ltd t/a is regulated by the Central Bank of Ireland

By Christian McCashin
Home owners can save almost a third of the value of their mortgage by simply switching to a cheaper deal. A bank mortgage price war means anyone on an average variable rate can save hundreds a month on even a relatively small home loan of €150,000.

Joey Sheahan, of said: ‘Many people assume that once they’ve taken out a mortgage with a lender for 20, 25 or 30 years, then that’s the end of the decision-making process. But mortgages are just like any financial product, they should be reviewed every three years to ensure you are not paying over the odds.’
Figures show anyone on ‘average’ mortgage rates can save between €40,000 and €100,000 by moving to another lender.
Brokers are expecting a surge in mortgage switching over the next year as banks ramp up their interest rate price-war with more households back in positive equity – which means the house is worth more than the mortgage – because of the surge in the property prices.

Davis Hall, of the Irish Mortgage Holders’ Organisations, said: ‘As consumers we don’t switch, we just have an obsession about not switching. We don’t engage in anything that involved a bit of hard work… It doesn’t make any sense to look at the price of a litre of petrol on garage forecourts and not be looking at switching your mortgage.
‘You’re also helping to spice up the market and contributing to kicking the market and let the bank know they can ring you back if they want if they have a better deal.’
More than one in five mortgage holders – 21% – could make savings by switching their lender, the Central Bank found recently.

And a Competition and Consumer Protection Commission report on mortgage switching revealed that while over a fifth of the adult population in Ireland hold a mortgage, limited evidence was found of switching.
Fewer than 25,000 of 740,000 mortgage holders switched their home loan – just 3.3% – in Ireland in 2014, a study by the European Commission found. Almost half – 44% – of all mortgage – holders surveyed felt the switching process would be too complex, while 27% of those who switched found no obstacles to the process.
More than a third – 36%- of their mortgage reported that they had to chase their lender to be kept informed during the switching process.

And a quarter said they considered switching but did not because they felt it would take too much time and too much effort.

Mr Sheahan, of , said ‘We deal with clients on a daily basis who are unaware that switching could even be an option for them – many believe that they are simply ‘locked in’ to the contact and their current lender. And of those who have heard of switching most think it is ‘just too much hassle.’
‘People have also voiced concerns over the cost of switching but they don’t realise that most banks give cashback which will more than cover this from €1,500 up to 2% of the loan amount.’

Source: The Daily Mail 24 Nov 2017

If you are interested in getting a mortgage and would like to speak to us at please don’t hesitate to contact us at in Cork +353 21 4277037 or 353 86 8060601

MyMortgages Ltd t/a is regulated by the Central Bank of Ireland.

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