New data from the Banking and Payments Federation Ireland (BPFI) shows mortgage approvals slipped in August, with movers taking the biggest step back while switching activity remained strong.
Approvals Down Overall
August saw 4,536 mortgages approved, with a combined value of €1.46 billion. That’s a touch higher in value than last year – up just over 4% – yet the actual number of approvals slipped, falling by 2.5% year-on-year.
The drop was most evident among mover-purchasers, who recorded a sharp 16.8% fall in approvals compared to August 2024. Just 825 mover loans were approved last month, valued at €318 million. Despite the fall in numbers, the average mover mortgage hit a record €384,887, almost €31,000 more than a year ago.
First-Time Buyers Hold Steady
First-time buyers continue to drive the market, making up 2,822 approvals in August. This represents a small dip of 1.4% year-on-year, with a combined value of €920 million. On average, first-time buyers are borrowing €325,934, well below mover levels but still reflecting ongoing price growth.
Switching and Top-Ups on the Rise
While home purchase loans cooled, other areas stayed lively. 504 switching approvals were logged in August, a rise of nearly 14% compared with last year, adding up to €152 million. Top-up mortgages also ticked upwards, climbing 9.1% to 299 loans, while buy-to-let activity nudged higher by 7.5%.
BPFI chief executive Brian Hayes noted that these rises reflect ongoing property price inflation, with the latest CSO figures showing residential property prices up 7.5% in the year to July. He added that mortgage switching is “likely to remain strong in the months ahead,” supported by fixed-rate maturities and limited housing supply.
Wider Market Pressures
CSO data also highlights the strain on supply. The number of homes purchased in 2024 fell to 48,780, down from over 50,000 in previous years, as new housing completions slowed.
The average age of a homebuyer is still 40, but the picture changes once you look around the map. In South Dublin, the typical buyer is much younger at 37, while in Kerry the median age stretches out to 45. Income levels also show sharp contrasts: joint buyers in Dún Laoghaire-Rathdown reported a median income of €157,100, more than double the €77,900 recorded in Monaghan.
Annual Totals Hit New Record
Despite August’s slowdown, the bigger picture shows continued growth in mortgage lending. Approvals over the 12 months to August reached €16.7 billion, the highest level since the BPFI began tracking the data in 2011. First-time buyers accounted for €10.4 billion of that total.
Need Help Figuring Out Your Next Step?
The mortgage market is shifting, but not evenly. Some lenders are moving quicker than others, and unless you’re comparing across the board, it’s easy to miss out on a better deal.
If you’re a first-time buyer, considering a switch, or planning your next move, now is the right time to get expert advice.
Talk to an All Financials mortgage advisor today and see what options are open to you.
Author: Fran Cooke
