Mortgage Approvals and Values on the Rise

The latest Irish Banking Federation’s mortgage approval figures are showing a 1,762 mortgages (to the value of €317) were approved by lenders in Ireland during December 2013.

This means that the total number of mortgage approval s during 2013 were 18,520. This represents an increase of just over 4 per cent compared to 2012. The vast majority of these roughly 17,058 represent house purchases which means that in 2013 there was an increase of 6.1 per cent over the previous year in house purchases.

The IBF Chief Executive, Noel Brett has this to say when commenting on the figures. “The picture for 2013 shows growth in both volume and value in the level of mortgage approvals over 2012 and this upward trend is welcome.”

“With November traditionally the peak month for mortgage activity, the 2.2 per cent month on month decline in the approvals between November and December is to be expected. Banks are well positioned to lend to customers who meet the criteria for a mortgage, the key consideration being the borrower’s capacity to repay.

A borrower’s capacity to repay or more commonly known as repayment capacity is you ability to repay your loan’s repayments. This is calculated normally over a period of six months to stress test your loan and see if the loan is viable.

The statics from IBF’s December period show a paltry increase of just 3 per cent annual increase in mortgage approvals last year.

However the value of those houses purchase mortgages, the value of re-mortgages and top-ups increased by 10.1 to €305 million and by 10 per cent to €12 million respectively.

According to the IBF, the average number of mortgage approvals last year was up by just over 4 per cent to 18,520. Approval for house purchase increased by a little over 6 per cent in 2013, with 17,058 mortgage approvals for house purchase during the year.

The IBF represents more than 70 member institutions and associates, including licensed domestic and foreign banks and institutions, operating in the Irish financial marketplace. The figures in its latest report are based on a three month moving average. The full data of this research is available on the IBf website at ibf.ie.