THERE WAS ALMOST €14.1 billion worth of mortgage drawdowns in Ireland in 2022, the highest level since 2008, according to two reports published today by the Banking and Payments Federation Ireland (BPFI).

A total of 15,888 new mortgages to the value of €4,353 million were drawn down by borrowers during the fourth quarter of 2022.

This represents an increase of 19.5% in volume and 31.5% in value on the corresponding fourth quarter of 2021.

A comparison with the previous quarter shows an increase of 7% in volume and 7.3% in value.

First-time buyers (FTBs) remained the single-largest segment by volume (46.8%) and by value (46.2%).

Year-on-year drawdown volumes rose by 21% to 52,634 while values rose by 34.3% to almost €14.1 billion. These were the highest levels since 2008.

A total of 3,635 mortgages were approved in December 2022 – some 1,789 were for FTBs (49.2% of total volume) while mover purchasers accounted for 798 (22.0%).

The number of mortgages approved in December fell by 33.1% month-on-month and by 5.7% year-on-year.

Mortgages approved in December 2022 were valued at €996 million – of which FTBs accounted for €485 million (48.7%) and €255 million by mover purchasers (25.6%).

The value of mortgage approvals fell by 33.5% month-on-month and 1.5% year-on-year.

Year-on-year approval volumes rose by 9.3% to 58,276 while values rose by 17.9% to €15.9 billion.

“Our latest mortgage data which provides an annual picture for 2022, shows significant numbers of both drawdowns and approvals and a particularly strong year for first time buyers,” BPFI chief executive Brian Hayes said. 

“Drawdown volumes rose by 21% to 52,634 while values rose by 34.3% to almost €14.1 billion. These were the highest levels since 2008,” Hayes said.

“At a segment level, FTBs continue to drive the growth with FTB volumes at their highest level since 2007 and 26.3% higher than in 2008. By contrast, mover purchase volumes were 47.3% lower than in 2008,” he said. 

Hayes added: “Looking to the year ahead, we expect housing and mortgage demand to remain strong despite the challenging economic environment.

“Almost 108,000 FTB loans have been drawn down in the past five years and lenders will continue to support customers as they seek to buy or build a home.”