Latest news with #BPFI
BreakingNews.ie
3 days ago
- Business
- BreakingNews.ie
First-time buyers lead the way for mortgage approvals in April
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. Advertisement 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. Advertisement 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.
RTÉ News
3 days ago
- Business
- RTÉ News
Mortgage approvals continued to grow in April as first-time buyer activity reached new highs – latest figures from BPFI
There were 2,922 first-time buyer (FTB) approvals valued at almost €1 billion (€965m) in April, according to the latest figures from the Banking and Payments Federation of Ireland's Mortgage Approvals Report. The report shows the highest April FTB levels since the data series began in 2011. The number of mortgages approved rose by 4.7% month-on-month and by 5.8% compared with the same period last year. 31,853 FTB mortgages valued at almost €10 billion (€9,999m) were approved in the twelve months ending April 2025, the highest activity levels since the data series began. Commenting on the publication of the latest data, BPFI Chief Executive Brian Hayes said: "The latest mortgage figures show continued growth in approvals in April 2025, with volumes up by 5.8% year on year and values up 13.6% over the same period." "We can see from today's figures that lenders are supporting more and more FTBs, which points to a healthy pipeline for lending in the coming months," he said. "However, FTB housing demand is also growing, as evidenced by the 14,554 applications for Help to Buy in the first three months of 2025. This is up from 9,991 in the same period of 2024," said Mr Hayes.
Irish Times
3 days ago
- Business
- Irish Times
Average mortgage approval value hit new record of €319k in April
Average Irish mortgage approval values rose to a record of more than €319,000 in April, new figures from the banking industry reveal, as house prices continued to climb, requiring property owners to take on higher levels of debt. The Banking & Payments Federation Ireland (BPFI) said on Friday that lenders approved 4,705 home loans in the month, an increase of 4.7 per cent from March and 5.8 per cent from the same month last year. The total value of mortgage approvals in the Republic was €1.5 billion, a sharp 13.6 per cent higher than April 2024, the banking lobby group said. It meant that the average value of a mortgage approved in the month was €319,143, the highest monthly level since the BPFI's records began in 2011. READ MORE The average value of a first-time-buyer mortgage approved in April also hit a record €330,123, up by more than 8 per cent over 12 months. First-time buyers accounted for €965 million of the total value of mortgages approved in April, or 61 per cent. [ Could Ireland's new mortgage offerings save you a lot of money? Opens in new window ] 'We can see from today's figures that lenders are supporting more and more first-time buyers, which points to a healthy pipeline for lending in the coming months,' said BPFI chief executive Brian Hayes. 'However, first-time buyer housing demand is also growing, as evidenced by the 14,554 applications for Help to Buy in the first three months of 2025. This is up from 9,991 in the same period of 2024.' House prices in Ireland grew at an average annual rate of 7.5 per cent in March, according to the most recent Central Statistics Office figures, as continuing supply shortages, Government incentives to buy, and expectations of further interest rate cuts continued to fuel demand. The median or middle price paid for a home in the 12 months to March was €362,500. Property prices nationally have increased by 161.6 per cent from their trough in early 2013. Meanwhile, amid a shortage of second-hand properties for sale, the BPFI said mover-purchase mortgage approvals fell by 5.9 per cent in the 12 months to the end of April but were up 0.7 per cent in value terms. BPFI figures published in April revealed that the average value of mortgage drawdowns also hit a record of almost €328,000 in the first three months of the year amid soaring demand and low levels of supply. This was driven by a 9.6 per cent annual rise in loans on second-hand properties to €370,790. The Government is targeting the delivery of 303,000 new homes by 2030, starting with 41,000 homes this year and rising incrementally to 60,000 homes a year by 2030. However, the Central Bank, the Economic and Social Research Institute (ESRI) and other bodies are forecasting supply to fall well short of those targets this year and next.
Irish Examiner
3 days ago
- Business
- Irish Examiner
First-time buyers fuel rise in mortgage approvals
A total of 4,705 mortgages were approved in April this year, marking an almost 5% rise compared to the previous month. New figures released by the Banking and Payments Federation Ireland (BPFI) found that first-time buyers made up more than 62% of total approvals, while mover purchasers accounted for 18%. On an annual basis, the number of mortgage approvals rose by almost 6% compared with April last year. Mortgages approved last month were valued at just over €1.5bn, of which first-time buyers accounted for 64% and mover purchasers for 21%. The value of mortgage approvals rose by just over 5% month-on-month and by 13.6% year-on-year. Meanwhile, re-mortgage/switching activity rose by 53.5% in volume terms year-on-year and rose by 74.8% in value in the same period. Commenting on the publication of the latest data, Brian Hayes, Chief Executive, BPFI said: 'The latest mortgage figures show continued growth in approvals in April 2025, with volumes up by 5.8% year on year and values up 13.6% over the same period. "There were 2,922 first-time buyer approvals valued at almost €1bn in April, the highest April levels since the data series began in 2011. "While the volume of mover purchase approvals fell by 5.9%, the value of those approvals rose by 0.7% to €317m, the highest April level since the data series began.' 'In annualised terms, 31,853 first-time buyer mortgages valued at almost €10bn were approved in the twelve months ending April 2025, the highest activity levels since the data series began." The value of mover purchase approvals also reached a new high at almost €4bn over the same period, BPFI figures found. 'We can see from today's figures that lenders are supporting more and more first-time buyers, which points to a healthy pipeline for lending in the coming months," Mr Hayes added. However, first-time buyer housing demand is also growing, as evidenced by the 14,554 applications for Help to Buy in the first three months of 2025. This is up from 9,991 in the same period of 2024.'
RTÉ News
7 days ago
- Business
- RTÉ News
Tourism may help support long-term economic growth
A new report shows that while export-driven economic growth in the first quarter of this year may not be sustainable, efforts to boost domestic tourism should help to sustain employment and support more balanced growth. But the latest SME Monitor from Banking & Payments Federation Ireland (BPFI) also shows that cost pressures and price increases remain. Early estimates from the Central Statistics Office shows that Irish gross domestic product (GDP) is up 13.3% compared to the same time last year. BPFI said that most of this growth, however, was driven by multinational exports. It said that 99% of the increase of €34.3 billion in total exports was accounted for by exports of medical and pharmaceutical products, largely due to front loading - particularly to the US - by multinational firms reacting to tariff threats by the new US administration in early April. Today's survey also noted that employment reached historic highs by the end of 2024, with 2.8 million people in work, almost 400,000 more than pre-pandemic levels in 2019. Irish-owned businesses accounted for nearly 75% of total employment and 66% of total earnings in the Irish economy, according to recent CSO data. Today's survey noted that in the hospitality sector, some 86% of employment is in Irish-owned enterprises. Ireland saw 6.6 million foreign resident visitors last year who spent an estimated €8.2 billion, including on travel fares, up 12% from 2023. BPFI said that while nearly 1.1 million foreign residents visited Ireland in the first quarter of 2025, that was down from 1.4 million visitors during the same time in 2024. "Given their importance to the economy, this trend in foreign visitors should be monitored closely, but domestic tourists also make a crucial contribution to the sector," Brian Hayes, the chief executive of BPFI, said. "Irish residents spent an estimated €3.6 billion on domestic travel in 2024, an increase of 15.3% year-on-year. More broadly, Irish consumers and businesses spent €12.3 billion in hospitality and tourist outlets in Ireland in the 12 months ending March 2025 according to BPFI analysis of payment card data from the Central Bank of Ireland," he said. 80% of tourism businesses expect stable or increased visitor numbers in 2025, according to Fáilte Ireland's latest Tourism Barometer. But Brian Hayes cautioned that cost pressures along with continued increases in prices could risk Ireland's affordability and competitiveness in the tourism sector in the future. "It is encouraging to see that with the publication of the new Tourism Policy Framework for the period to 2030, there are new efforts to boost business tourism and year-round domestic travel," he said. "Given that global trading conditions are likely to deteriorate, and Ireland's reliance on foreign direct investment, these efforts will be critical to ensuring that growth is more balanced and not overly reliant on unpredictable international trends," he added.
