Mortgage drawdowns by first-time buyers are at the highest level since 2008, according to the mortgage drawdowns figures released by the Banking and Payment Federation Ireland.
A total of 14,217 mortgages to the value of almost €4.6 billion were drawn down by borrowers in the months of July, August and September.
This is a 13% increase in volume compared to the same period last year.
Most of this activity was driven by first-time buyers – with 8,164 mortgages they accounted for 60% of all drawdowns in the third quarter.
“Our latest figures show continued momentum across the mortgage market, with growth in drawdowns across every customer segment during the third quarter of 2026,” said Brian Hayes, chief executive at BPFI.
Remortgaging and switching activities saw a sharp rise as well.
Switching was the fastest growing customer segment in mortgage activity – 2,214 customers switched to a mortgage with different terms in the months between July and September.
That marked an increase of almost 42% compared to the same period last year.
Some of this can be explained by the impact of the two interest rate hikes by the European Central Bank, as some lenders are starting to pass the increase on to tracker mortgage customers.
Another hike is not likely at the ECB’s November session, but is possible in December, according to economists.
However, many customers are just shopping around, according to mortgage brokers.
“The sharp increase in mortgage switching activity shows that mortgage holders are voting with their feet and aware that substantial savings can be made by shopping around for their mortgage,” said Trevor Grant, chairman of the Association of Irish Mortgage Advisors.
The number of mortgages on new properties went up 7.5% year-on-year, to 3,244. This is the highest number of mortgages on new-builds was the highest since 2007.
There was also growth in mortgage approvals in September, according to the BPFI.
A total of 5,393 mortgages were approved last month, up 6% compared to August.
