Surge in mortgage approvals shows improvements for property market

There was some more good news for the property market as the amount of mortgage approvals this June saw an increase of nearly 9% on last June’s figuremortgage-approval

Just over 1,600 mortgage loans with a value of €280 million were approved in June – an 8.8% increase on the amount of approvals for the same month last year which shows that the confidence of the banks to lend is gradually improving. This figure should not be confused with the amount of people who actually availed of the loan offer for which figures have not yet been released.

Data relating to mortgage activity is analysed and regularly released by the Irish Banking Federation. The increase in approvals comes at a time when property prices across the country recorded their first annual increase of 1.2% – the first such rise since the end of the ‘boom’ in 2008. But while more and more people are getting approved, the average loan amount has gone down.

The average mortgage sum given to successful applicants last month stood at €174,675 – 2.6% lower than the average amount drawn down 12 months ago. Those looking to remortgage to reduced monthly repayments or get a top-up for home improvements were more likely to be disappointed. The success rate for a remortgage or loan top-up went down nearly 8% but the average value of such loan went up beyond the €100,000.