Mortgage drawdowns hit their highest level since 2008 in the six months to the end of June, as home prices continued to climb ever higher.
Data from industry group Banking and Payments Federation of Ireland showed the value of drawdowns topped €6.2 billion in the first six months of the year.
“While all customer segments in H1 2025 grew year on year, first-time buyers (FTBs) continue to dominate, with 11,803 FTB mortgages, valued at more than €3.7 billion, the highest [first half of the year] drawdown volumes and values since 2007 and 2006, respectively,” BPFI chief executive Brian Hayes said. “The number of FTB mortgages on new properties continued to increase significantly, reaching 4,531, the highest [first half] level since 2008. By contrast, while the number of mortgages on second-hand properties increased marginally to 10,312 it was 9.7% below the level in [the first half of] 2022,” he added.
In a sign of the impact of spiralling home prices, the value of drawdowns in the second quarter rose 18.1 per cent year-on-year, far ahead of the 9.6 per cent volume increase.
Mortgage drawdown data is seen as a useful guide to the housing market as it can indicate how many people are moving forward with a home move or refinancing, as opposed to those who have gained mortgage approval but are not utilising it.
Separately, mortgage approval data shows close to €1.6 billion worth of home loans were signed off during June, up 16 per cent year-on-year. The number of approved mortgages rose 9 per cent compared to June 2024.
“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 per cent more than in H1 2024,” Mr Hayes said.
