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RTÉ News
7 days ago
- Business
- RTÉ News
Mortgage drawdown values hit almost €6.2 billion in the first half of 2025 - highest level since 2008
Mortgage drawdown values reached almost €6.2 billion in the first half of 2025 - the highest half year values since 2008 - new figures from Banking and Payments Federation Ireland show. Volumes also climbed by 10% over the same time to 20,195, the latest BPFI figures reveal. First-time buyers continue to dominate, with 11,803 mortgages, valued at more than €3.7 billion. This marked the highest half year drawdown volumes and values since 2007 and 2006, respectively. Today's figures show that the average home mortgage drawdown value in the first half of 2025 reached the highest semi-annual level on record at €329,444. BPFI noted that the average FTB drawdown value for secondhand property exceeded €300,000 for the first time at €304,351, more than double that of the figures €147,091 in the first half of 2013. The latest BPFI figures also show that switching activity jumped by 41.9% in volume and 60% in value year-on-year, with the value of switcher mortgages reaching €732m, the third highest level since 2008. BPFI said that signals a normalisation of switching trends, following a sharp peak in activity in 2022 and subsequent slowdown. A total of 10,978 new mortgages to the value of €3.371 billion were drawn down by borrowers during the second quarter of 2025 - an increase of 9.6% in volume and 18.1% in value on the second quarter of 2024. First-time buyers remained the single largest segment by volume (59.1%) and by value (60.9%) while re-mortgage/switching volumes and values soared by 67.2% and 91.5% year on year respectively. Brian Hayes, the chief executive of BPFI, said that new properties (including self-build) accounted for 34.5% of home purchase mortgage drawdowns in the first half of 2025, up from 31.7% the same time last year, and the highest first half proportion since 2010. "The number of FTB mortgages on new properties continued to increase significantly, reaching 4,531, the highest H1 level since 2008. By contrast, while the number of mortgages on secondhand properties increased marginally to 10,312 it was 9.7% below the level in H1 2022 (11,417)," he added. Looking forward, Mr Hayes said that FTB mortgage approval volumes rose by 5.4% to 15,736 in the first half of 2025, the highest half year level since the data series began in 2011, while mover purchase approval volumes fell for the fourth year in a row to 4,990. "FTB housing demand remains very strong, with 22,903 Help to Buy applications in the first half of 2025, according to the Revenue Commissioner, almost 41% more than in H1 2024," he added.
The Journal
7 days ago
- Business
- The Journal
Mortgages have hit levels not seen since right before the crash
THE VALUE OF mortgage drawdowns in the first six months of a year has hit levels not seen since the months leading up to the financial crash. The Banking and Payments Federation Ireland (BPFI) has published its latest mortgages figures, painting a picture of the rising cost of buying a home in Ireland today. Almost €6.2 billion worth of mortgage drawdowns were made in the first half of 2025, an increase of 18.7% on the same period last year and the highest values for the first six months of a year since 2008. During the first half of 2025, the average mortgage value hit a record high of €329,444. Mortgages for first-time buyers have also shot up. As of the end of June, a total of 11,803 first-time mortgage drawdowns have been recorded this year, amounting to more than €3.7 billion – the highest volume and value since 2007 and 2006 respectively. 'While all customer segments in the first half of 2025 grew year-on-year, first-time buyers continue to dominate,' said BPFI chief executive Brian Hayes The value of switcher mortgages hit €732 million, the third-highest for the first six month of the year since 2008. Switcher mortgages in the first half of the year were up 41.9% in volume and 60% in value compared to the same period in 2024. Advertisement 'This signals a normalisation of switching trends, following a sharp peak in activity in 2022 and subsequent slowdown,' Hayes said. New properties, including self-builds, accounted for 34.5% of home purchase mortgage drawdowns in H1 2025, up from 31.7% in H1 2024. It's the highest share of total home types taken up by new properties since 2010. The number of mortgages on second-hand properties increased marginally to 10,312. The number and value of mortgage drawdowns in Q2 2024, Q1 2025 and Q2 2025 Banking and Payments Federation Ireland Banking and Payments Federation Ireland The rising figures are in line with stories from home buyers about having to fork out large sums for a house or apartment as the housing crisis persists. Asking prices climbed an average of 7% year-on-year in recent months , with Donegal – the county with the highest increase – seeing a jump of 19%. Galway and Leitrim have both seen a 13% rise in asking prices, reaching an average of €350,000 and €198,000 respectively. In many cases, properties ultimately sell for well above asking prices as prospective buyers out-bid each other to secure coveted homes. Brian Hayes said that there had been a significant increase in Help to Buy applications for first time buyers. 'First-time buyer mortgage approval volumes rose by 5.4% to 15,736 in the first half of 2025, the highest such level since the data series began in 2011, while mover purchase approval volumes fell for the fourth year in a row to 4,990. Related Reads New tenancy rules will have 'chilling effect on housing supply', IPOA to tell Housing Committee Taoiseach: 'Some councils took their eye off the ball, they need to go back to housing' 'First time buyer housing demand remains very strong, with 22,903 Help to Buy applications in the first half of 2025, according to the Revenue Commissioner, almost 41% more than in the first half of 2024.' The new National Development Plan published this week stated that the government intends to invest €35.955 billion in housing development from 2026 to 2030, broken down into €28.275 billion for housing itself and €7.680 billion for water infrastructure. However, critics of the plan have said it was scant on detail and held back from committing to concrete investment measures to alleviate the housing crisis. Green Party housing spokesperson Councillor Oliver Moran said the NDP was a 'missed opportunity' for the government to help local authorities make more housing available. 'Local authorities up and down the country are ready to do their part on improving our existing buildings,' Moran said. 'This National Development Plan was a missed opportunity to commit serious resources to local authorities to retrofit more council housing, tackle vacancy through compulsory purchases and activate the derelict sites that blight our streets.' Social Democrats housing spokesperson TD Rory Hearne said that the NDP 'gives no indication that the government is planning to move away from the measures that have plagued housing provision in the last decade, the failed policies which pander to developers and investment funds'. 'No amount of money can solve the housing crisis if the government refuses to change its approach to providing social and affordable homes – [the NDP] gives me no reason to believe that it intends to do otherwise,' Hearne said. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
7 days ago
- Business
- Irish Examiner
Average mortgage drawdown reaches record level after €28,000 rise in a year
The average value of home mortgages drawn down in Ireland has hit the highest level on record, reaching over €330,000 as the combined value of all mortgages during the first half of the year increased by nearly 19%, new data from the Banking and Payments Federation, Ireland (BPFI) shows. During the first six months of this year, there were just over 20,000 mortgages drawn down worth a combined value of €6.2bn, an increase of 18.7% compared to the same period in 2024 and the highest value seen between January and June since 2008. There were 11,803 mortgage drawdowns by first-time buyers worth a combined €3.7bn while mover-purchasers accounted for 3,947 mortgage drawdowns worth €1.47bn in total. Of all those mortgages, 10,978 were drawn down between April and June. They had a combined value of €3.37bn. This represents an increase of 9.6% in volume and 18.1% in value in the corresponding second quarter of 2024. According to the BPFI report, as of the end of June, the average mortgage drawdown value stood at €330,745 - which is an increase of €28,000 compared to the same point in 2024. The average mortgage on second-hand properties increased by more than €29,000 to €324,688 in the year to the end of June while average home mortgage on new properties was almost €24,000 higher at €341,063. Chief executive of the BPFI, Brian Hayes, said during the first half of year first-time buyers 'continue to dominate' after recording the 'highest' drawdown volumes and values since 2007 and 2006, respectively. Switching activity during the first half of the year also increased by 41.9% in volume - with 2,660 mortgages drawn down - and by 60% in value terms to €732m. New properties, including self-builds, accounted for 34.5% of all home purchases between January and June. By contrast, while the number of mortgages on second-hand properties increased marginally to 10,312 it was 9.7% below the level seen in the first half of 2022. Mortgage approvals The BPFI also released data on the mortgage approvals seen during June which showed that a total of 4,883 mortgages were approved, of which first-time buyers accounted for nearly 60% and mover-purchasers accounted for 20.3%. The value of all these mortgages stood at just under €1.56bn. Nearly €1bn of this was from first-time buyers. The value of mortgage approvals fell by 3.1% compared to May but rose by 16.2% year-on-year. There were 53,191 mortgage approvals in the 12 months ending at June 2025, valued at €16.5bn. Mr Hayes said that mortgage approvals during the first half of the year are up 5.4% to 15,736, the highest level for the first six months of the year since the data series began in 2011. 'While mover purchase approval volumes fell for the fourth year in a row to 4,990. First-time buyer housing demand remains very strong, with 22,903 Help to Buy applications in the first half of 2025, according to the Revenue Commissioner, almost 41% more than in H1 2024,' he said. Read More Mortgage approval values jump nearly 18%
BreakingNews.ie
27-06-2025
- Business
- BreakingNews.ie
Mortgage approvals hit record €14.1bn over last year
The number of mortgages approved in May rose by over 10 per cent compared to last year. Mortgage approval values jumped by almost 18 per cent, with a record €14.1 billion approved in the 12 months to May. Advertisement Figures from the Banking and Payments Federation also show the number of home owners seeking to re-mortgage or switch rose by 67 per cent. The number of home mortgage approvals in the past year exceeded 43,000 for the first time since the lobby group began collecting the data. A total of 43,070 mortgages were approved in the 12 months ending in May. The average mortgage approval value hit a new record of €319,000 the month prior, in April 2025, as figures from the Central Statistics Office show house prices in Ireland grew at an average annual rate of 7.5 per cent in April. It comes amid ongoing supply shortages and surging demand fuelled by Government incentives and expectations of further interest rate cuts. Advertisement Ireland Councillors' job is to build houses and not object... Read More The chief executive of BPFI, Brian Hayes, said mortgage approval figures showed 'continued growth in May' noting that home mortgage activity had 'climbed to new heights'. He said first-time buyers 'continued to dominate with 32,118 mortgage approvals valued at more than €10.1 billion over the same period.' Mortgage switching approvals reached their highest monthly levels in May since January 2023 following an increase of 66.9 per cent in volume and a 94.9 per cent just in value year on year. Mr Hayes noted this was an increase on a 'relatively low base' but said it returned the activity level to 'historically typical levels' following 'a sharp peak in activity in 2022 and subsequent slowdown'.
Irish Examiner
26-06-2025
- Business
- Irish Examiner
Mortgage approval values jump nearly 18%
The total combined value of all mortgages approved during May stood at €1.6bn, an increase of 17.8% compared to the same month last year, as house prices continue to increase, new data from the Banking and Payments Federation, Ireland show. The data shows last month there were 5,038 mortgages approved — an increase of 10.5% compared to last year — of which 3,092 mortgages were first-time buyers and 948 were mover purchasers. The value of these mortgages stood at €1.6bn — of which first time buyers accounted for just over €1bn and mover purchasers accounted for €364m. Remortgaging and switching activity saw a significant increase during May, with approvals up 66.9% to 586, while the value increased 94.9%, to €169m. BPFI chief executive Brian Hayes said the increase in remortgaging and switching activity 'marks a return to historically typical levels of switching activity, following a sharp peak in activity in 2022 and subsequent slowdown'. In the 12 months to the end of May, home mortgage approvals values hit a record €14.1bn. Mr Hayes said this was the first time the value of mortgages approved in a 12-month period had exceeded €14bn. 'At the same time, the number of home mortgages exceeded 43,000 for the first time since the data series began, with 43,070 mortgage approvals in the 12 months ending May 2025. First-time buyers continued to dominate, with 32,118 mortgage approvals valued at more than €10.1bn over the same period,' he said. Earlier this week, the latest House Price Report showed house price inflation hit its highest levels in 10 years, with the typical listed price 12.3% more than a year ago. The typical listed price countrywide stands at €357,851. Average prices are now 40% higher than at the onset of the pandemic. The number of second-hand homes available to buy across the country stood at close to 12,100 as of the start of this month. This is largely unchanged compared to a year ago, and less than half the average prior to the pandemic. Read More Home building activity falls by over 4% marking 'hugely disappointing' start to 2025
