Mortgage approval values jump nearly 18%
The data shows last month there were 5,038 mortgages approved — an increase of 10.5% compared to last year — of which 3,092 mortgages were first-time buyers and 948 were mover purchasers. The value of these mortgages stood at €1.6bn — of which first time buyers accounted for just over €1bn and mover purchasers accounted for €364m.
Remortgaging and switching activity saw a significant increase during May, with approvals up 66.9% to 586, while the value increased 94.9%, to €169m.
BPFI chief executive Brian Hayes said the increase in remortgaging and switching activity 'marks a return to historically typical levels of switching activity, following a sharp peak in activity in 2022 and subsequent slowdown'.
In the 12 months to the end of May, home mortgage approvals values hit a record €14.1bn.
Mr Hayes said this was the first time the value of mortgages approved in a 12-month period had exceeded €14bn.
'At the same time, the number of home mortgages exceeded 43,000 for the first time since the data series began, with 43,070 mortgage approvals in the 12 months ending May 2025. First-time buyers continued to dominate, with 32,118 mortgage approvals valued at more than €10.1bn over the same period,' he said.
Earlier this week, the latest Daft.ie House Price Report showed house price inflation hit its highest levels in 10 years, with the typical listed price 12.3% more than a year ago. The typical listed price countrywide stands at €357,851.
Average prices are now 40% higher than at the onset of the pandemic.
The number of second-hand homes available to buy across the country stood at close to 12,100 as of the start of this month. This is largely unchanged compared to a year ago, and less than half the average prior to the pandemic.
Read More
Home building activity falls by over 4% marking 'hugely disappointing' start to 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Post
2 days ago
- Irish Post
Personal loans in Ireland hit record high especially for car payments
PEOPLE taking out personal loans in Ireland hit record highs in the first quarter of 2025. Personal loans were up across all fields, particularly in car financing, according to new figures from the Banking & Payments Federation Ireland (BPFI). The newest BPFI Personal Loans Report reveals that the number of car loans increased by 20% year-on-year to 19,552, while the total value of such loans surged by 25% to €259 million. This is the highest level of car loans since the BPFI began collecting this data in 2020. The average car loan rose by €366 over the year, reaching €13,267. BPFI's Head of Sector Research & Analysis, Anthony O'Brien, attributed the continued growth in car loans to rising demand for electric and plug-in hybrid vehicles, along with ongoing financing for second-hand cars. In total, over 60,000 personal loans were taken out in the first quarter of the year , valued at nearly €700 million. This represents an annual increase of 22% in volume and 24% in value. The average personal loan increased by €177 compared to the same period last year, now standing at €11,239. The report also shows major growth in green loans, which rose 26% in volume to 1,531 loans. Their total value climbed 29.3% to €35.1 million. The average green loan reached €22,906, which was more than double the average across all personal loan types. Home improvement loans also saw a sharp increase, with 15,372 loans drawn down in the first quarter, an 18% increase from last year. These loans were valued at €198 million, 19% higher than the same period in 2024. The average home improvement loan increased by €116 to €12,886. O'Brien said that these numbers show a big start to the year for consumer borrowing, with Q1 setting new records for personal loan drawdowns both in terms of volume and value. Separately, in Britain, a Supreme Court ruling brought relief to lenders facing possible payouts related to motor finance commissions. The court overturned a previous decision that could have forced banks to compensate borrowers for undisclosed commissions paid to car dealerships. While the judgement reduces the potential financial burden on lenders, the Financial Conduct Authority (FCA) is moving forward with a redress scheme covering deals dating back to 2007. Bank of Ireland, which holds around 2% of the British motor finance market, had already allocated £143 million for possible compensation. Following the ruling, the bank said it would fully review the judgement but made no further comment. See More: BPFI, FCA, Loans
The Journal
3 days ago
- The Journal
Irish people borrowed more money for car loans at the start of 2025 than in at least five years
CAR LOANS IN Ireland hit a new peak in the first three months of this year, new figures show, reaching their highest level since specific record-keeping and analysis of the data began five years ago. The Banking and Payments Federation Ireland (BPFI) has released data showing that from January to March, 19,552 car loans were taken out, collectively valued at a total of €259m. The average car or auto finance loan was €13,267, an increase of €366 compared with last year. Personal loan activity also grew across other types of loans, including green and home improvement loans and loans for education, holidays or special occasions. Overall, a total of 60,770 personal loans were drawn down in the first quarter of the year, valued at €683m. It marks a year-on-year in increase of 22.1% in volume and 24.1% in value. BPFI's Personal Loans Report Q1 2025 published today shows car loan volumes and values reached their highest levels on record, with 19,552 loans valued at €259 million. Read the report on — Banking & Payments Federation Ireland (@BPFINews) August 15, 2025 The average personal loan value rose by €177 to €11,239 compared with the same period last year. The number of car loans rose by 21.5% to 19,552, while the value of these loans increased by 25% year on year to €259m. Advertisement There were 15,372 home improvement loans, an increase of 18.2%, and they were valued at €198m, a 19.2% jump. The average home improvement loan increased by €116 to €12,886. The category of 'other loans' includes loans for reasons like education, holidays and special occasions such as weddings. A total of 25,846 'other loans' were drawn down valued at €226m, up 25% in volume and 27.5% year-on-year. The average loan value for other loans increased by €170 to €8,725. BPFI Head of Sector Research & Analysis Anthony O'Brien said that the latest figures 'reveal continued strong demand for personal loans'. 'When viewed on an annualised basis, we see there were 240,423 personal loans drawn down in the four quarters ending Q1 2025, valued at almost €2.6bn. This was more than double the value in the twelve months ending Q1 2021,' he said. O'Brien said the report shows the highest car loan volumes and values since the data series began in 2020. 'The continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases,' he said. 'While increases were seen across all categories, green personal loans, which comprise of green car and green home improvement loans, had the highest relative jump in value of 29.3% year on year to €35.1m in Q1 2025 and in volume by 26.6% to 1,531. 'These are the highest activity levels since the green loan data series began in 2022.' Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
3 days ago
- RTÉ News
Car loan values surge 25% to highest level on record in Q1
New figures out today show that car loan volumes and values reached their highest levels on record in the first quarter of this year. The latest Banking & Payments Federation Ireland (BPFI) Personal Loans Report shows that the number of car loans rose by 21.5% year on year to 19,552, while the value of these loans increased by 25% to €259m. The average car or auto finance loan increased by €366 to €13,267, BPFI added. Today's report also shows that personal loan activity grew across all categories including green and home improvement loans as well as loans for education, holidays and special occasions. A total of 60,770 personal loans were drawn down, valued at €683m, in the first quarter of this year - an increase of 22.1% in volume and 24.1% in value year on year. The average personal loan value rose by €177 year on year to €11,239. BPFI said the number of green loans rose by 26.6% year on year to 1,531 while the value of green personal loans jumped by 29.3% over the same period to €35.1m. It noted that the average green loan rose by €474 at €22,906 in the first three months of this year, more than twice the value of the average for all loans of €11,239. Today's report also reveals 15,372 home improvement loans were given out in the first quarter of the year, up 18.2% on an annual basis. These were valued at €198m 19.2% higher than the previous year. The average home improvement loan increased by €116 to €12,886. Meanwhile, a total of 25,846 loans for other purposes - including education, holidays and special occasions such as weddings - were drawn down, a rise of 25% in volume year on year, with values rising by 27.5% to €226m over the same period. The average loan value for other loans increased by €170 to €8,725. "Our latest figures reveal continued strong demand for personal loans, with Q1 2025 marking a new high for overall drawdown volumes and values," Anthony O'Brien, Head of Sector Research & Analysis at BPFI said. Noting that car loan volumes and values reached their highest level since the BPFI data series began in 2020, Mr O'Brien said the continued growth in electric and plug-in hybrid electric vehicles is likely contributing to these increases. He also said it is worth noting that personal loans are also used to finance second-hand car purchases.
