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

 

MyMortgages.ie 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:
https://www.irishtimes.com/business/financial-services/more-than-60-first-time-buyers-get-approved-every-day-for-218k-mortgage-1.3308122     28/11/2017
If you are interested in getting a mortgage and would like to speak to us at MyMortgages.ie please don’t hesitate to contact us at info@mymortgages.ie in Cork +353 21 4277037 or 353 86 8060601
MyMortgages Ltd t/a MyMortgages.ie is regulated by the Central Bank of Ireland

 

MyMortgages.ie Dublin Cork

 

Written by Robert McHugh, on 24th Nov, 2017. Posted in Property

Despite the Central Banks recent efforts to highlight the benefits of mortgage switching to consumers, the majority of mortgage holders remain unaware of the potential savings that exist and of their eligibility to switch lenders.

This is according to figures from MyMortgages.ie who have revealed that on “average” mortgages throughout the country anywhere between €40,000 and €100,000 could be saved by moving to another lender.

The broker, reflecting the views of the sector, expects a surge in mortgage switching over the next 12 months as banks ramp up their interest rate price war with more and more households back in positive equity with every passing month.

In 2015, research from the Central Bank in 2015 showed that approximately 1 in 5 mortgage holders could make savings by switching their mortgage. And again, in August of this year the Central Bank tried to highlight the issue and by proposing the introduction of statutory requirements to support consumers considering switching their mortgage.

MyMortgages.ie say that judging by the Central Bank’s estimates, then many more people, maybe as many of 2 in 5 mortgage holders throughout the country should be switching to another lender” yet switching made up just 3.3% of the mortgage market in 2014 and while this figure has certainly increased since then, MyMortgages.ie believe it is nowhere near where it should be.

Speaking this week, Head of Credit with MyMortgages.ie, Joey Sheahan said, “A mortgage is most people’s biggest monthly expenditure and yet it’s something that people don’t pay enough attention to when it comes to getting the best value on the market. Many people assume that once they’ve taken out a mortgage with a lender for 20/25/30 years, then that’s the end of the decision making process. But mortgages are just like any other financial product – they should be reviewed every 3 years to ensure you are not paying over the odds.”

He added, “If you are a fixed or variable rate mortgage customer you are definitely of interest to other mortgage lenders which means you could potentially save thousands of Euro over the remaining term of your mortgage by switching mortgage provider. Due to the current low cost of funds available for banks, in many cases there is no early breakage fee for exiting a fixed rate. You just have to call your bank to check this.”

Source: www.businessworld.ie   

 

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

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


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MyMortgages.ie Dublin Cork

 

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MyMortgages.ie Dublin Cork

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