Ireland’s mortgage market hits highest drawdown value since 2008 as first time buyers dominate.
Ireland’s mortgage market recorded its strongest year in almost two decades in 2025, with nearly €14.5 billion in home loans drawn down as first time buyers continued to underpin demand, according to new data from Banking and Payments Federation Ireland.
The federation said 46,358 mortgages were drawn down during the year, an annual increase of 7.7% in volume and 15.2% in value. The total represented the highest annual drawdown value since 2008.
“Potential mortgage output for 2026 looks positive, evident from the solid growth in mortgage approvals activity”
Brian Hayes, chief executive of BPFI, said the figures painted a picture of sustained demand across the market. “Our latest mortgage data shows steady growth in activity in the 12 months to the end of 2025.
“Drawdown volumes were up 7.7% year on year and values rose to almost €14.5 billion, the highest annual drawdown values since 2008,” he said.
First time buyers remain largest cohort
First time buyers (FTBs) remained the largest cohort in the market, accounting for 60% of drawdown volumes and 61% of their value. Their activity reached levels not seen since before the financial crisis, with 27,652 mortgages drawn down, worth more than €8.8 billion.
Hayes said the trend reflected both demographic strength and sustained demand for new homes.
“FTB volumes rose by 5.4% to 27,652 mortgages, the highest drawdown volumes since 2008, while values increased by 13% to the highest level since the series began in 2003,” he said.
The data showed a shift in the profile of homes being purchased. New properties, including self builds, accounted for 41% of first time buyer volumes and 43% of their value, the highest shares since 2009. Drawdowns on new homes reached 11,343 last year, worth more than €3.8 billion, the strongest levels since 2007.
Activity among mover purchasers weakened, with volumes falling to 8,782, the lowest level since 2014. The decline comes against a backdrop of limited supply in the second hand market and an environment where many homeowners remain locked into competitive fixed rate loans.
There was renewed momentum in refinancing. Switching volumes rose by 33.9% and the value of switching transactions climbed by more than half. In total, switching drawdowns reached almost €1.7 billion, the second highest level since 2008. “Top up” loans also rose to their highest level since 2010.
The approvals market mirrored the growth in drawdowns. Lenders signed off on 53,264 mortgages in 2025, worth more than €16.9 billion. Approval values increased by 10.3 per cent year on year, the highest since the data series began in 2011.
December’s approvals softened in line with usual seasonal patterns, falling by 17.6 per cent month on month, though activity remained broadly in line with the previous year. First time buyers made up nearly 60 per cent of December approvals.
Hayes said the approvals data suggested a strong pipeline for this year. “Potential mortgage output for 2026 looks positive, evident from the solid growth in mortgage approvals activity,” he said.
He added that housing supply would be a critical factor in the year ahead.
“In the short term, housing output looks encouraging for 2026. However, a significant increase in commencement activity in the first half of this year will be required to sustain output beyond 2026, given that commencements of about 16,500 last year were at their lowest levels since 2016 and half the levels observed in 2023.”
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