First-time buyer mortgage activity reached historic highs in the 12 months to the end of November, despite an overall slowdown in the number of approvals.
Figures from the Banking and Payments Federation show that 4,202 mortgages were approved in November with 61 per cent of these for first time buyers.
They also found the number and value of mortgages approved fell by 22.7 per cent and 19.4 per cent, year-on-year, largely driven by lower switching levels
Brian Hayes from the BPFI says the ECB's constant interest rate hikes played their part in affecting the numbers:
"In the preceding 18 months, people switched significantly their mortgages because they saw the ECB rate rising. There was a mammoth growth in switching in the second half of 2021, throughout 2022, and in most of 2023. So that's why the volume of switching activity is down and every new switcher is a new mortgage as well".
