A total of 43,030 mortgages valued at nearly €12.6bn were drawn down in 2024 as mortgage drawdowns for first-time buyers hit their highest level since 2007.
Figures from Banking & Payments Federation Ireland (BPFI) shows there were more than 26,000 mortgages worth €7.8bn drawn down by first-time buyers last year, a post-crash high.
A further 51,337 mortgages valued at more than €15.3bn were approved in 2024, of which there 31,496 worth €9.6bn were for first-time buyers, increases of 3.4% and 9.4% from 2023, respectively.
The overall value of mortgage approvals (+2.9%) and drawdowns (+4%) increased year-on-year despite a marginal decline (-1.3%) in drawdowns to the lowest annual volume since 2020.
Brian Hayes, CEO of BPFI, attributed the decline in the drawdowns to slower mover purchase and switching activity, with volumes for mover purchases down 6.3% to 9,030.
The value of mortgage approvals also increased 8.2% year-on-year, with residential property price inflation standing at 9.4% in November.
The average value of mortgages for first time buyers rose to €321,921 for new properties and €283,969 for second-hand homes, indicating annual increases of 1.6% and 7.4%, respectively.
"Almost 119,000 FTB mortgages have been drawn down in the past five years," said Hayes.
"It’s particularly encouraging to see strong growth in FTB mortgages on new property purchases or self-builds which reached their highest annual volume and value since 2008 and 2007, respectively.”
“Demand for housing and mortgages remains very strong, as evidenced by the continued rise in average mortgage drawdown values," he added.
"Average mortgage values reached their highest levels on record in all four home mortgage segments (FTB and mover purchase mortgages on new and secondhand properties) in 2024."
Looking ahead, Hayes said to expect strong housing and mortgage demand to continue in 2024, and said it was crucial that housing supply continues to increase.
"Housing commencement activity exceeded 60,000 units in 2024, but it remains to be seen how quickly new housing will be delivered in the months ahead and how much will be made available for private purchase," he concluded.
In responses to the figures, Irish Mortgage Advisors chair Trevor Grant said record drawdowns for first-time buyer had been driven by strong demand for home ownership, a resilient economy and uncertainty in the rental market.
"While this is encouraging, we need to see significantly more new homes delivered to curb house price inflation and meet growing demand," he added.
"The re-mortgage and switching market is set to grow considerably in 2025 as maturing fixed-rate mortgages and home improvement needs prompt more mortgage holders to explore their options.
"With a wide range of lender products available and such variation in costs, it’s essential for borrowers to seek impartial, market-based advice to secure the best deal."
(Pic: Getty Images)
