The latest Mortgage Market Profile Report from the Banking and Payments Federation Ireland (BPFI) has unveiled significant shifts in Ireland’s housing finance landscape, particularly regarding first-time buyer (FTB) mortgage activity. In the first half of 2025, the Irish mortgage market demonstrated remarkable resilience with 11,791 FTB mortgage drawdowns totaling over €3.7 billion – representing the highest first-half volumes since 2007 and the most substantial half-year value since 2006. This surge in activity comes at a time when potential homebuyers face numerous challenges, including rising property prices and competitive lending conditions. The report’s findings provide valuable insights into current market dynamics and consumer behavior patterns that will shape the housing sector in the coming months. For industry professionals and prospective homeowners alike, understanding these trends is crucial for making informed decisions in an increasingly complex property market.
The 5.5% year-on-year increase in FTB mortgage volumes during the first half of 2025 indicates growing confidence among first-time buyers despite ongoing economic uncertainties. This uptick in activity suggests that many individuals and couples are successfully navigating the mortgage application process and entering the property market. The data points to a gradual recovery in housing market participation, driven by factors such as stable employment conditions and improved access to mortgage products. However, this growth comes alongside rising property values, creating a challenging environment for potential buyers who must balance affordability with their desire to homeownership. The increase in volumes also reflects lenders’ willingness to extend credit to qualified borrowers in a competitive lending environment, with financial institutions adapting their criteria to meet the needs of diverse buyer profiles.
Accompanying the volume increase is a more substantial 14.4% rise in the value of FTB mortgages, signaling that while more people are entering the market, they are also borrowing larger amounts to secure their homes. This trend indicates continued upward pressure on property prices, with the mean average FTB mortgage value reaching €314,810 – the highest half-year level since the data series began in 2003. For homebuyers, this means that the dream of homeownership is becoming increasingly expensive, requiring larger deposits and more substantial financial commitments. The rising mortgage values also reflect market dynamics where supply constraints and high demand continue to push prices upward. For policymakers and regulators, these figures highlight the ongoing challenge of ensuring housing affordability while maintaining a vibrant property market that supports economic growth and wealth creation through homeownership.
One of the most striking findings from the BPFI report is that sole borrowers now account for 31% of all FTB mortgages, representing a notable shift in borrowing patterns. While this marks an increase from previous years, it remains well below the mid-2000s levels when sole borrowers comprised 45-48% of FTB mortgages between 2005 and 2008. This comparison provides important historical context, suggesting that while solo homeownership is gaining traction, it has yet to return to historical highs. The trend toward sole borrowing may reflect changing demographics, evolving attitudes toward homeownership, and increased financial independence among individuals. For lenders, these statistics highlight the need for specialized mortgage products that cater to single buyers, who may have different financial profiles, income structures, and risk assessments compared to joint borrowers. Understanding these patterns is crucial for developing targeted lending strategies that address the needs of this growing market segment.
Regional analysis reveals fascinating differences in borrowing patterns, particularly when examining Dublin’s housing market. The data shows that in the capital, almost half (47%) of sole borrower FTB mortgages were for apartments, compared to just 14% of joint mortgages in the same period. This disparity suggests that single buyers are disproportionately attracted to more affordable housing options in urban centers, where detached and semi-detached properties typically command higher price points. The concentration of sole borrowers in apartment purchases indicates a strategic approach to homeownership, with individuals choosing more entry-level properties as a stepping stone onto the property ladder. For real estate professionals, this pattern provides valuable insights into buyer preferences and can inform marketing strategies and property development decisions. The data also highlights the importance of considering regional market dynamics when advising clients on property purchases, as borrowing patterns and property types can vary significantly between urban and rural areas.
A closer examination of property type preferences reveals distinct differences between sole and joint borrowers. While only 22% of FTB mortgages on new properties were drawn down by sole borrowers, they accounted for more than one third (36.4%) of FTB mortgages on existing properties. This suggests that single buyers are more likely to purchase established homes rather than newly constructed properties, potentially due to price considerations or the desire for established neighborhoods and amenities. Furthermore, the data shows that sole borrowers represented about one-fifth of mortgages on detached and semi-detached houses but almost two-thirds (64.2%) of mortgages on apartments. This significant disparity underscores the importance of property type when analyzing borrowing behavior. For prospective homebuyers, these patterns highlight the need to carefully consider property options that align with their financial circumstances and long-term housing needs. The data also provides valuable insights for property developers and investors seeking to understand market demand across different property segments.
The apartment market’s unique relationship with sole borrowers deserves special attention, particularly given the 64.2% representation of single buyers in this segment. This concentration suggests that apartments serve as an important entry point to homeownership for many individuals who might otherwise be priced out of the market. The higher proportion of sole borrowers in apartment purchases can be attributed to several factors, including lower purchase prices relative to houses, lower ongoing maintenance costs, and suitability for single-person households. For lenders, this data indicates that apartment purchases by sole borrowers represent a distinct lending category with its own risk profile and characteristics. Understanding these dynamics is crucial for developing appropriate lending criteria, property valuation methods, and risk assessment frameworks. For policymakers, the concentration of sole buyers in the apartment segment highlights the importance of ensuring adequate supply of affordable housing options that meet the needs of single-person households and smaller families.
The report also reveals interesting trends among mover purchasers, whose mortgage activity grew by 3.5% year-on-year to 3,947 transactions, with values increasing by 13.3% to almost €1.5 billion. This growth in mover activity suggests that the property market is not just supporting first-time buyers but also facilitating mobility among existing homeowners. The mean average home mover mortgage value reached €373,393, reflecting the higher price points typically associated with moving up the property ladder. This dual growth in both FTB and mover segments indicates a healthy, balanced housing market where different buyer types can find suitable options. For real estate professionals, this data suggests that the market is experiencing broad-based activity, providing opportunities across various property types and price points. The simultaneous growth in both segments also indicates that chains are moving more smoothly, which is positive news for market fluidity and transaction volumes.
The rising mortgage values and changing borrowing patterns have significant implications for housing affordability in Ireland. The combination of increasing property prices and larger mortgage amounts means that homeownership is becoming more financially demanding than in previous years. For first-time buyers, particularly sole borrowers, this creates a challenging environment where careful financial planning and realistic expectations are essential. The data suggests that while more people are entering the market, they are doing so with higher levels of debt, which could impact their financial flexibility and long-term sustainability. For policymakers, these trends highlight the ongoing challenge of balancing market growth with affordability concerns. The rise in mortgage values also underscores the importance of financial education and guidance for prospective buyers, helping them understand the full implications of their borrowing decisions and develop realistic budgets that account for not just mortgage payments but also associated costs like property taxes, insurance, and maintenance expenses.
The changing dynamics in the mortgage market are prompting lenders to reevaluate their product offerings and lending criteria to better meet the needs of diverse borrower profiles. The growing proportion of sole borrowers suggests that financial institutions may need to develop specialized mortgage products that cater to single buyers, potentially with more flexible qualification criteria and innovative features. Lenders are also likely to pay closer attention to property types and location-specific risks, given the concentration of sole borrowers in apartments and urban areas. For borrowers, this evolution in lending practices could mean more tailored products that better match their individual circumstances and financial goals. However, it also signals a more nuanced approach to risk assessment, with lenders potentially applying different criteria to different borrower profiles and property types. Prospective buyers should expect lenders to place greater emphasis on comprehensive financial assessments that consider not just income levels but also debt-to-income ratios, employment stability, and overall financial health.
For real estate professionals and property developers, the BPFI report provides valuable market intelligence that can inform business strategies and development decisions. The data reveals distinct preferences between sole and joint borrowers across different property types and locations, allowing for more targeted marketing and product development. Real estate agents can use this information to better understand client needs and preferences, providing more relevant property recommendations and advice. Property developers might consider adjusting their project mix to better align with market demand, potentially increasing the supply of apartments and other property types that appeal to sole borrowers. The report also highlights opportunities in existing property markets, where the value of FTB mortgages reached record levels despite modest volume growth. By understanding these market dynamics, industry professionals can better position themselves to serve diverse buyer segments and capitalize on emerging trends in the Irish property market.
For prospective homebuyers navigating today’s challenging property market, the BPFI report offers several practical insights and actionable recommendations. First, it’s crucial to develop a realistic understanding of your borrowing capacity and the true cost of homeownership, including not just mortgage payments but also associated expenses. Second, consider property types that align with your financial circumstances – apartments may offer a more accessible entry point for sole buyers, while joint borrowers might explore a broader range of options. Third, research regional market dynamics carefully, as borrowing patterns and property availability can vary significantly between urban and rural areas. Fourth, prepare a comprehensive financial profile that demonstrates stability and reduces perceived risk to lenders. Finally, consider seeking professional advice from mortgage brokers and financial advisors who can help navigate the complexities of today’s lending environment and identify the most suitable products and strategies for your individual circumstances. By understanding current market trends and preparing thoroughly, prospective buyers can position themselves for success in Ireland’s evolving housing market.
