The latest quarterly mortgage data from Ireland’s Banking and Payments Federation Ireland reveals a robust housing market with mortgage drawdowns reaching nearly €4 billion in the third quarter of 2025. This impressive 7.7% year-on-year increase represents a significant milestone for the Irish property sector, suggesting that both consumer confidence and lender activity have strengthened considerably. The figures indicate a market that has not only recovered from previous downturns but is now exhibiting growth patterns that haven’t been witnessed in nearly two decades. This sustained upward trajectory in mortgage activity signals that the Irish housing market is entering a more mature and stable phase, with lending institutions showing greater willingness to finance home purchases while maintaining prudent lending standards.
First-time buyers continue to dominate Ireland’s mortgage landscape, accounting for nearly 60% of both volume and value in the latest quarter. This substantial market share demonstrates that the dream of homeownership remains alive and well for new entrants to the property market. The fact that first-time buyers represent such a large portion of mortgage activity suggests several important market dynamics: lenders have tailored products to meet the needs of this demographic, government initiatives may be successfully supporting entry-level buyers, and younger generations remain committed to achieving homeownership despite significant economic challenges. This concentration in the first-time buyer segment also indicates that the market is functioning relatively well for those purchasing their first homes, though questions remain about affordability and accessibility across different income levels.
The 2025 third quarter figures mark a particularly significant historical moment for first-time buyers, with volumes reaching their highest annualized levels since the fourth quarter of 2007. This seventeen-year high represents a remarkable recovery and demonstrates that the market has successfully navigated the turbulence of the global financial crisis and subsequent property market correction. The fact that these figures represent the second highest values since data collection began in 2003 further underscores the substantial scale of current activity. This historical context provides perspective on just how exceptional these current levels are, suggesting that Ireland’s housing market may be entering a period of sustainable expansion rather than the speculative boom that preceded the 2008 crash. For potential buyers, this indicates a market that is both active but potentially more stable than previous peak periods.
Among the most striking developments in the latest mortgage data is the dramatic growth in the remortgage and switching market, with volumes increasing by 35% and values by 57.9% year-on-year. This surge in mortgage switching activity suggests several important trends in the Irish lending landscape. Homeowners appear increasingly aware of the potential savings available by refinancing their mortgages, likely driven by competitive rates among lenders and improved financial literacy among consumers. The nearly 58% increase in value terms indicates that borrowers are not only switching in greater numbers but are also securing significantly better deals, which could translate to substantial savings over the lifetime of their mortgages. This trend also reflects a more competitive lending environment, with financial institutions actively competing for existing customers by offering improved terms and conditions to prevent them from switching to competitors.
The September 2025 mortgage approval figures provide an important monthly snapshot that complements the quarterly data, showing 4,761 mortgages approved—a 5% monthly increase and 7.1% annual rise. These approval figures are particularly significant as they represent the pipeline of future mortgage drawdowns, suggesting that the strong quarterly performance is likely to continue into subsequent months. The €1.486 billion total value of September approvals indicates substantial lending activity at the application stage, which typically translates to drawdowns within the following months. This consistent approval rate suggests that lenders are maintaining accessible criteria while borrowers continue to demonstrate confidence in their ability to commit to long-term mortgage payments. The steady monthly increases also indicate that the housing market is experiencing sustainable growth rather than short-term fluctuations.
Breaking down the September 2025 mortgage approvals reveals a clear market segmentation with first-time buyers accounting for €916 million (61.6%) and mover purchasers representing €339 million (22.8%). This distribution shows that first-time buyers continue to dominate the mortgage market, consuming the majority of available lending, while mover purchases represent a secondary but still substantial segment. The relatively smaller share for mover purchasers might indicate several factors: potentially fewer existing homeowners looking to trade up, or that current homeowners are choosing to stay in their properties longer rather than moving. This segmentation also suggests that the market may be experiencing more activity at the entry-level than in higher-value segments, which could have implications for housing stock availability and price distribution across different market segments.
A particularly noteworthy aspect of the Q3 2025 data is the growing significance of new properties in the overall mortgage landscape. New homes, including self-build projects, now account for over 35% of all home mortgage drawdowns, representing a substantial increase from 31.6% in the same period of 2024. This shift toward new construction suggests that the Irish housing market is not only recovering but also potentially rebalancing after years where existing properties dominated. The increased focus on new homes could indicate several positive developments: improved supply of new housing coming to market, greater confidence in new construction quality and value, and potential government incentives supporting new builds. This trend also suggests that developers may be successfully addressing previous concerns about construction quality and delivery timelines, making new homes more attractive to mortgage lenders and buyers alike.
The financial significance of new properties becomes even more apparent when examining the year-on-year growth in mortgage values for new homes, which increased by an impressive 25.2% to exceed €1.2 billion in Q3 2025. This represents the highest Q3 value for new properties since 2007, indicating that not only are more new homes being financed, but they are also commanding higher overall investment. The substantial increase in value terms suggests that buyers are increasingly willing to invest in new properties, potentially due to factors like modern design, energy efficiency features, lower maintenance requirements, and warranties that come with new builds. This financial commitment to new construction also indicates that both lenders and buyers see value in supporting the development of new housing stock, which could help address Ireland’s long-standing housing supply issues and potentially stabilize prices in the long term.
The driving force behind the surge in new property mortgage activity comes primarily from first-time buyers, whose mortgages on new properties increased by 21.8% in volume to 3,017 and by 29.9% in value to over €1 billion. This concentration of first-time buyers in the new property segment suggests that new homes are particularly appealing to those entering the market for the first time, likely due to factors like modern amenities, energy efficiency, and the ability to customize or select features during the buying process. The substantial value increase indicates that first-time buyers are not only purchasing more new properties but are also securing larger mortgages, potentially reflecting both higher property prices and greater confidence in their financial capacity to commit to homeownership. This trend also suggests that new home developers are successfully targeting first-time buyers with products that meet their specific needs and preferences, creating a virtuous cycle that supports both market segments.
In contrast to the robust activity among first-time buyers, mover purchasers accounted for significantly fewer new property mortgage drawdowns, with just 521 transactions valued at €193 million in the same period. This disparity highlights an interesting market dynamic where existing homeowners seem less inclined to purchase new properties compared to first-time buyers. Several factors could explain this difference: established homeowners may prefer the established neighborhoods and larger properties typically found in the existing housing stock, or they may be more price-sensitive given the typically higher prices of new builds. The relatively smaller value share also suggests that mover purchasers who do choose new properties may be selecting smaller or less expensive options compared to first-time buyers. This market segmentation indicates different priorities and financial considerations between these two buyer groups, which developers and lenders may need to address separately.
The overall mortgage activity trends observed in Q3 2025 paint a picture of an Irish housing market that is simultaneously experiencing growth and structural change. The combination of record first-time buyer activity, significant remortgage switching, and the increasing importance of new properties suggests a market that is becoming more diverse and potentially more sustainable than previous boom periods. These trends also indicate that the market may be reaching a more mature phase where different segments are developing distinct characteristics and dynamics. The sustained growth in mortgage drawdowns across multiple segments suggests that the market recovery is broad-based rather than concentrated in specific areas, which could lead to greater overall stability. However, the continued dominance of first-time buyers also raises questions about whether the market is adequately serving all segments of the population and whether current growth patterns are sustainable over the long term.
For those navigating Ireland’s current housing market, several strategic approaches can help potential buyers and existing homeowners make the most of current conditions. First-time buyers should carefully research both new and existing properties to determine which offers the best value proposition for their specific needs and budget, considering factors like location, energy efficiency, and long-term maintenance costs. Current homeowners considering remortgaging should conduct thorough market research to identify potential savings opportunities, as the significant growth in switching activity indicates that substantial savings may be available. Those interested in new properties should evaluate developer reputation, construction quality, and potential additional costs beyond the purchase price. Market participants should also stay informed about potential regulatory changes and interest rate movements that could impact borrowing costs. By taking a strategic approach and considering both immediate needs and long-term implications, homebuyers and homeowners can position themselves to benefit from current market conditions while managing potential risks.
