Average mortgage approval value hits record high for first-time buyers and mover-purchasers
The average mortgage approval for a first-time buyer now stands at €322.050. Picture: iStock
Mortgage approvals dropped by nearly 5% during February as the average value of the mortgage for first time buyers and mover-purchasers hit their highest levels on record, data from the Banking and Payments Federation Ireland (BPFI) shows.
According to the data, there were 3,420 mortgages approved during February — a decrease of 162, or 4.5%, compared to February 2024. Every mortgage category, bar those for residential investment letting, recorded a decrease.
Approvals for first-time buyer mortgages declined by 3.2% year-on-year to 2,102, while mover-purchaser mortgages recorded a decline of 9.9% to 626.
However, while the number of mortgages being approved has declined during the month, the combined value of all these approvals has increased by 6.6% to €1.08bn when compared to the same month last year.
First-time buyers accounted for €677m of this, with mover purchasers making up another €235m. Mortgage switching approval accounted for €121m while top-up mortgages accounted for €31m. Residential investment letting mortgages accounted for €13m.
The value of the average first-time buyer mortgage value has now hit €322,050, while the value of the average mover-purchaser mortgage has hit €375,495. Both of these are a record high for the federation.
The federation said that housing demand remains strong, but supply constraints mean that competition between prospective buyers could intensify in the months ahead.
Brian Hayes, the chief executive of the federation, said the figures show that mortgage approvals “remain stable” despite a slowdown during last month.
Mr Hayes said the record high values of the average first-time buyer and mover-purchaser mortgage “reflects higher housing prices across the country, which increased by 8.1% in the 12 months to January 2025 according to the Central Statistics Office (CSO)”.
Figures published last week by the CSO shows that the median price of a home sold in Ireland during that 12 month period was €359,999 with prices now significantly higher than their Celtic Tiger peak.
“It’s clear that housing demand remains strong, especially from first-time buyers," Mr Hayes said.
The demand side of the housing issue is expected to remain an issue for several years, with early housing completion estimates already falling behind the Government’s stated target.
In a report published on Thursday, the Economic and Social Research Institute (ERSI) projected just over 34,000 homes would be completed this year and over 37,000 next year.
This follows disappointing completion figures during 2024 which saw just over 30,000 homes completed.
The Government has set a target of 300,000 new home completions by 2030.
The ESRI said one possible impediment to increasing housing output is the funding gap. It said at least €5bn in additional funding is required for housing output to increase by 20,000 units.
