Fall in first-time buyers getting loan approval

A report states there has been a fall in the number of first-time buyers being approved for a mortgage.

New buyers are now competing with local authorities for new and second-hand houses, according to the Banking and Payments Federation. But the numbers switching mortgage have risen.

A total of 523 householders switched their mortgage in July, up from just over 300 in the same month last year. First-time buyers still represent the largest share of those getting mortgage approval at just around half of the home-loans given the go-ahead by banks. But there has been a squeeze on new buyers.

A total of 1,957 new buyers were approved for a mortgage in July, down 79 from the same month last year, according to the Banking and Payments Federation Ireland.

In the year so far there were 21,878 mortgages approved for first-time buyers, a fall of 346 in a year.

This is despite expectations there would be a rise in the numbers of approvals for new buyers. Many potential buyers are coming up against Central Bank rules that restrict what they can bid for a property.

The chief economist of the banking federation, Dr Ali Ugur, also said home buyers were competing with local authorities and investment funds when bidding for new and second-hand homes.

Local authorities acquired almost 2,900 houses in the past two years.

Irish Independent 6 September 2018

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