The Irish mortgage market is experiencing a significant rebound in 2025, with the latest Banking and Payments Federation Ireland (BPFI) data revealing that mortgage approval volumes have reached their highest level since 2022, totaling 45,500 mortgages valued at a substantial €14.6 billion in the first ten months of the year. This impressive performance not only marks an improvement over the previous year but also represents the highest year-to-date mortgage values recorded since the data series began in 2011. The market’s resurgence is particularly noteworthy given the economic uncertainties that have characterized the global financial landscape in recent years, suggesting that Ireland’s property market is demonstrating remarkable resilience and potentially entering a new phase of stability and growth.
A closer examination of the data reveals a fascinating market dynamic where different segments of the homebuying population are experiencing vastly different conditions. First-time buyers continue to dominate the mortgage landscape, securing 27,612 approvals worth nearly €8.973 billion in the first ten months of 2025. These figures represent the highest levels recorded for first-time buyers since the tracking of this data began, indicating that despite broader economic challenges, the fundamental desire and ability of young Irish adults to enter the property market remains remarkably strong. This trend suggests that government support schemes, favorable lending conditions, and pent-up demand are successfully overcoming affordability hurdles for those entering the market for the first time.
The historical perspective adds further context to these impressive figures. When comparing the current first-time buyer mortgage values to those recorded a decade ago, the growth becomes even more striking. The €8.973 billion approved for first-time buyers in 2025 represents more than four times the value of mortgage approvals recorded in the same period of 2015, which stood at just €2.224 billion. This exponential growth reflects not only increasing house prices but also the expansion of mortgage products, improved lending standards that have become more accommodating to first-time buyers, and the successful implementation of government assistance programs. The decade-long trajectory illustrates how the Irish mortgage market has transformed significantly since the financial crisis of 2008, with more accessible financing options enabling greater participation from first-time buyers.
However, the market narrative isn’t uniformly positive across all segments, as evidenced by the concerning trend in mover purchaser approvals. This segment of the market has experienced a notable contraction, with approval volumes dropping to just 8,771 in the first ten months of 2025. This represents the lowest year-to-date level for property upgraders since 2020, signaling that while first-time buyers are entering the market in record numbers, existing homeowners looking to move up the property ladder are facing significant challenges. The decline appears to be accelerating, with October 2025 marking the weakest October for mover purchase approval volumes since 2015. This divergence between first-time buyers and movers suggests that affordability constraints, inventory limitations, or economic caution may be disproportionately affecting those looking to trade up to larger or more desirable properties.
The mortgage switching segment presents an intriguing counterpoint to these trends, demonstrating robust growth that bucks the overall market slowdown. In the first ten months of 2025, mortgage switching activity reached impressive levels, with 5,382 switcher approvals valued at €1.570 billion. This represents a remarkable 37.6% increase in volume and a substantial 58.8% increase in value compared to the same period in 2024. The surge in switching activity has pushed these figures to their highest year-to-date levels since 2022, indicating that homeowners are increasingly leveraging competitive refinancing opportunities to reduce their monthly payments, access equity, or secure more favorable terms. This trend suggests that while the purchase market may be experiencing segment-specific challenges, the refinancing environment remains highly attractive and accessible to eligible borrowers.
The Help to Buy scheme continues to play a pivotal role in supporting first-time buyer activity, with demand reaching unprecedented levels. According to Revenue Commissioners data, the scheme has attracted 31,608 applications in the first ten months of 2025, representing a substantial 43% increase compared to the same period in 2024. This remarkable uptake underscores the scheme’s effectiveness in bridging the affordability gap for first-time buyers, particularly in higher-value property markets. The scheme’s popularity suggests that despite rising property prices, first-time buyers are finding ways to enter the market with government support, demonstrating a combination of determination, strategic planning, and financial product savvy. The sustained high demand for Help to Buy also indicates that market participants view it as a valuable component of their homebuying strategy rather than a temporary measure.
Looking at the most recent monthly data for October 2025, we see a market that continues to show resilience despite some easing in growth momentum. The month saw 4,783 mortgages approved, representing a modest 0.5% increase from September but a slight 1% decrease compared to October 2024. The total value of mortgages approved in October reached €1.545 billion, showing a stronger performance with a 4% monthly increase and a 4.2% annual rise. This monthly snapshot reveals a market that is maintaining significant momentum despite some moderation in growth rates. The fact that mortgage values continue to grow at a faster pace than volumes suggests that the average mortgage size is increasing, which could reflect rising property prices, greater borrowing confidence, or a shift toward higher-value properties among approved borrowers.
The composition of October’s mortgage approvals provides further insight into the market’s structure. First-time buyers accounted for 2,869 of the month’s approvals, representing 60% of the total volume and continuing their dominance of the market. This high proportion underscores the critical role that first-time buyers play in the Irish mortgage market, often setting the tone for overall market activity. Meanwhile, mover purchasers accounted for 894 approvals, or 18.7% of the total. The substantial gap between first-time buyer and mover purchaser participation highlights the diverging fortunes of these two market segments. This composition pattern has become increasingly pronounced in recent months, suggesting that the market is bifurcating with first-time buyers driving activity while existing homeowners face greater challenges in executing moves.
The mortgage switching activity in October further illustrates the health of the refinancing segment, which is experiencing explosive growth. Compared to the same period in 2024, re-mortgage and switching activity rose by an impressive 37.3% in volume terms and a remarkable 63.2% in value. This dramatic outperformance of the switching segment compared to the overall market indicates that homeowners are increasingly recognizing the benefits of refinancing in the current interest rate environment. The significant value growth in switching activity suggests that homeowners are not only moving their mortgages to better rates but also potentially accessing additional equity or restructuring their debt in more advantageous ways. This trend also indicates that lenders are competing aggressively for refinancing business, offering attractive terms that are driving substantial business volume.
The market dynamics described in these statistics reveal several underlying trends that deserve careful consideration. The surge in first-time buyer activity, particularly when viewed in the context of the Help to Buy scheme’s popularity, suggests that government intervention has been successful in creating pathways to homeownership for new entrants. However, the simultaneous decline in mover purchaser activity raises questions about market liquidity and the ability for existing homeowners to transition between properties. This creates potential challenges for a well-functioning housing ecosystem, as the ability to move up the property ladder is a crucial component of market efficiency. The diverging trends also highlight the importance of targeted policy support for different market segments, as the same conditions that benefit first-time buyers may not be as conducive to those looking to trade up or relocate.
Interest rate considerations are undoubtedly playing a significant role in shaping these market dynamics. While the data doesn’t explicitly mention interest rates, the surge in mortgage switching activity strongly suggests that rate differentials between existing mortgage products and current market offerings have become sufficiently attractive to motivate homeowners to refinance. The fact that switching activity is growing at more than double the rate of overall mortgage approvals indicates that interest rate savings represent a powerful incentive for eligible borrowers. This environment likely also influences first-time buyer behavior, as competitive rates may be offsetting some of the affordability challenges posed by rising property prices. However, the continuing strength of the first-time buyer segment despite potential rate concerns suggests that other factors—such as government support and improving economic sentiment—are playing equally important roles in mortgage market activity.
For market participants navigating these evolving conditions, several strategic considerations emerge. First-time buyers should continue to leverage available support schemes like Help to Buy while also exploring various mortgage products to find the most suitable terms for their circumstances. Those looking to move up the property ladder may need to adopt a more patient approach, potentially considering renovation projects or smaller moves rather than attempting substantial property upgrades in the current market. Homeowners with existing mortgages should regularly assess refinancing opportunities, as the significant growth in switching activity suggests substantial savings may be available. Real estate professionals should tailor their approaches to these distinct market segments, recognizing that the challenges and opportunities differ significantly for first-time buyers, movers, and refinancing clients. Ultimately, the Irish mortgage market in 2025 presents a landscape of both challenges and opportunities, with strategic positioning and informed decision-making being key to success for all participants.
