The mortgage scene is finally beginning to see some positive growth, especially for first time buyers. Recent figures have just been released for May 2019, which have shown substantial upward traction in regards to the approval of loans.
The statistics indicated that there has been a 10pc increase in approvals when comparing May 2018 to May 2019. During May 2019, 4926 applications for loans were approved by at least one of the banks. Additionally, there was a 19.9pc increase from April to May of this year.
Most of the approvals from May seem to have been heavily dominated by first time buyers, who made up 51pc. This demographic is heavily marked to via social media and other online platforms. Additionally, banks advertise to this untapped market by offering exemptions that make getting a loan more affordable.
This seems to have been effective, give that approvals are high for this month. If approvals are high, this indicated that there were also a very large number of first time buyer applications that the bank saw during the previous months. Mover purchases also made up a large portion of the approvals, accounting for 26pc according to the Banking and Payments Federation (BPFI).
It totality, the loans sum came to €1.14 billion, of which €600 million was loaned out to first time buyers. The other €344 million was lent out to movers. This number was said to have been a promising look into the rest of the year, especially after a slow start in 2019.
These changes may have come as a result of the increasing age of first time home buyers. In order to be considered for a mortgage, the bank looks for a variety of details that would make you seem to be a reliable candidate for a mortgage. Some of the most important aspects for banks are the ability to pay back debt on time, your income, ability to save, and if possible, records of loans current or past.
With this aging population of first time buyers, there is a much more established pool of people that the bank has the opportunity to give loans to. These people most likely have a steady financial plan and a savings account that would have solid implications about their ability to repay loans.
No matter what the true reason is for this increase in approvals, this seems to be a good sign in the long run for the people of Ireland.