Average value of homebuyer mortgages jumps to record-high

Muireann Duffy

The average value of homebuyer mortgages, which considers both first-time and mover purchasers, has increased to €284,623 - surpassing the previous high (€268,220) recorded in the first quarter of 2008.

The latest figures from Banking and Payment Federation Ireland (BPFI) shows there was continued growth in both mortgage approvals and drawdowns in the third quarter of 2022, which they attributed to a further rise in mortgage switching.

However, September's approval figures were down on previous months, dropping by 3.5 per cent month-on-month, but remained 12.2 per cent above the same month last year.

In July-September, 14,851 mortgages were drawn down by borrowers, totalling €4,057 million. In terms of volume, the figure was up 29.4 per cent on the same quarter of 2021, while the value noted a 45.7 per cent increase.

First-time buyers (FTB) continue to make up the majority of the market share, representing 44.3 per cent of the mortgage volume and 43.9 per cent of its value.

The average FTB mortgage drawdown in Q3 rose to €270,568, up from €243,271 a year earlier, while the average mover-purchaser drawdown increased to €315,463, up from €284,836.

"Year-on-year, we can see the number as well as the value of non-purchase mortgage drawdowns (which are mainly switching but also include top-ups) more than doubled in Q3 2022, reflecting the fact that mortgage customers are seeking out better rates in the wake of the interest rate increases recently announced by the ECB," BPFI's chief executive Brian Hayes said.

He added that Q3's record average mortgage value comes on the back of "strong house price inflation and the continuing challenge of supply in the housing market".