Irish mortgage lending is continuing on an upward trajectory, according to Banking and Payment Federation Ireland’s (BPFI) latest figures.
The data shows over 21,000 mortgages were drawn down in first half of this year valued at almost €6.8 billion .
The value of first-time buyer (FTB) mortgage drawdowns rose by 10.5% year on year to €4.1 billion, the highest half year level since the data series began in 2003
On an annualised basis, the value of mortgage approvals reached €17.6 billion in the 12 months ending June 2026, the highest level since the data series began in 2011.
Speaking on RTÉ’s Morning Ireland, BPFI chief executive Brian Hayes said they are seeing a very positive signal for the entire mortgage market from banks and non-banks for the first six months.
“In terms of drawdown figures, they’re the really important figures because whilst we do a monthly approval report, this report speaks to the actual drawdown,” said Mr Hayes.
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According to other recent BPFI data, the average mortgage drawdown for a first time buyer is around €325,000 and the mover lending is around €390,000.
A new property report from the Society of Chartered Surveyors Ireland suggests that national property prices will increase by an average of 5% over the next 12 months, up marginally on the 4% forecast six months ago.
It also found an affordability gap of up to €25,000 for a couple on a combined salary of €113,000 in the Dublin commuter belt area.
As house prices have risen in the past decade, Mr Hayes believes the macro prudential rules from the Central Bank means there is very clear guidance given to lenders in terms of loan to income, loan to value.
“We’ve seen in the last five years, average weekly earnings up by about 20% to 25%, so where you have too many people chasing too few houses, it’s inevitable that you get house price inflation,” he said.
Mr Hayes note that CSO figures indicate some moderation in house price inflation, with the key to this being more house building and reaching 50,000 units per year.
“We predict this year in terms of BPFI figures that we’ll be at about 40,000 at the end of the year,” he said.
“We need to go further and faster because with so many people chasing too few houses, you’re inevitably going to get house price inflation,” he added.
