First-time buyers lead the way for mortgage approvals in April

Kenneth Fox

First-time buyers continue to lead the way for mortgage approvals in April, with the overall value of approvals supported by ongoing increases in the average value of approvals and increases in re-mortgaging levels.

The trends in approvals are broadly in line with Q1 and are unlikely to impact our mortgage forecasts, according to Davy.

The Banking & Payments Federation Ireland’s (BPFI) April mortgage approvals of €1.5 billion are ahead by 14 per cent by value and 4 per cent by number versus April 2024, with the timing of Easter (April 2025 versus March 2024) likely having some impact on April 2025 activity levels.

First-time buyers (€965 million) again lead growth with a 12 per cent increase in value (3 per cent by number), with a large increase in re-mortgaging (€151 million), albeit off a low base. Second and subsequent buyers remains more muted with a 1 per cent increase in value and 6 per cent decline in numbers of approvals.

Average mortgage approvals continue to increase with an 8 per cent increase in first-time buyers to €330,123 and a 7 per cent increase in second and subsequent buyers to €374,823.

On a year-to-date basis, the overall value of approvals has increased by 16 per cent, with a 13 per cent increase in first-time buyers and 9 per cent increase in second and subsequent buyers.

Second and subsequent buyers are more impacted by the health of the existing homes market where supply remains at very low levels.

Nonetheless, the trends in April are broadly in line with Q1 and point to increases in activity in the mortgage market.

As a result, we maintain our mortgage forecasts with an overall mortgage drawdown of €14 billion (2024: €12.6 billion) and growth of 3 per cent in the stock of mortgage balances.