Homeowners Beware: Ireland Records a Drastic 80% Decrease in Mortgage Switching Activity

Mortgage switching and remortgaging activity in Ireland has declined by 79.4% in the past year, impacting overall mortgage approval activity. Learn more about the decrease in Ireland's mortgage switching activity.

Mortgage switching and remortgaging activity in Ireland has experienced a significant decline of 79.4% over the past year, as reported by the Banking and Payments Federation Ireland (BPFI). In August, the number of approved mortgages in this category stood at just over 300, a sharp contrast to the 1,600 mortgages approved during the same period in the previous year. This decline in switching has contributed to an overall slowdown in mortgage approval activity.

Homeowners Beware: Ireland Records a Drastic 80% Decrease in Mortgage Switching Activity | ogusyis

During August 2023, a total of 4,534 mortgages were approved, reflecting a 4.5% decrease compared to the previous month and an 18.2% decrease compared to the same period last year. Of the approved mortgages, first-time buyers accounted for 2,829 mortgages, making up 62.4% of the total volume, while mover purchasers accounted for 1,029 mortgages, representing 22.7% of the total volume.

In terms of value, the mortgages approved in August amounted to €1,302 million. First-time buyers contributed €820 million (62.9%) to this total, whereas mover purchasers contributed €346 million (26.5%). The value of mortgage approvals experienced a month-on-month decrease of 3.9% and a year-on-year decrease of 14.2%.

The decline in mortgage switching is particularly noteworthy, with a 79.4% drop in volume and an 81.7% drop in value year-on-year. This indicates a clear shift in the mortgage market, as fewer individuals are opting for mortgage switching or remortgaging.

In conclusion, the latest report from BPFI highlights a significant decrease in mortgage switching and remortgaging activity in Ireland. The number of approved mortgages has experienced a decline of 79.4% compared to the previous year, with August 2023 seeing just over 300 approved mortgages in this category. This decline has contributed to an overall slowdown in mortgage approval activity. The report also indicates a decrease in the total number of mortgages approved, with a 4.5% decrease compared to the previous month and an 18.2% decrease compared to the same period last year. Furthermore, the value of mortgage approvals has also seen a decrease of 3.9% month-on-month and 14.2% year-on-year. This data reflects the current trends in the Irish mortgage market, highlighting the evolving preferences of potential homeowners.