The Banking and Payments Federation Ireland (BPFI) Mortgage Drawdowns Report for Q2 2024 has highlighted a significant trend: first time buyers continue to dominate the mortgage market, achieving the highest Q2 drawdown volumes since 2007.

Key Highlights from the Report

The report reveals striking statistics for the mortgage market, particularly for first time buyers:

• Total New Mortgages - A total of 10,110 new mortgages worth €2,854 million were drawn down in Q2 2024, marking a 2.2% increase in volume and a 3.3% rise in value compared to the same period last year.
• First Time Buyer Dominance - First time buyers represented 62.3% of these drawdowns, making them the largest cohort by volume and value. Compared to earlier this year, this shows an increase of 20% in volume and 21% in value.

Mortgage Approval Activity - A Strong Indicator of the Months Ahead

The Banking and Payments Federation Ireland also published its BPFI Mortgage Approvals Report for June 2024, which showed that 4,480 mortgages were approved in June 2024, with first time buyers accounting for 61.2%. This marks the third strongest June for first time buyer approvals since the BPFI began its series in 2011, indicating a robust pipeline for first time buyer drawdowns in the latter part of the year.

Increased New Build Purchases

First time buyers are not just driving up overall mortgage drawdown volumes; they are also heavily influencing the new build homes market.

New homes, including self-builds, accounted for 34.3% of mortgage drawdowns, up from 30.4% for the same reporting period last year. First time buyer mortgage drawdowns on new builds increased by 19.2% to 2,404 and made up over 83% of drawdowns on new homes. This indicates the value of government initiatives available to first time buyers in respect of new builds, such as the Help to Buy (HTB) Scheme and First Home Scheme (FHS).

• The Help to Buy Scheme offers a tax refund of up to €30,000 and is only available to first time buyers purchasing newly built homes.
• The First Home Scheme offers up to 30% of the cost of a new home, in return for the Government and participating lenders receiving an equity share in the home equal to the percentage of funding provided. A recent quarterly report from the FHS shows that in the first half of 2024, there was a 107% increase in homes bought with FHS assistance compared to the same period in 2023. Additionally, 67% of FHS applicants are combining the funding with the HTB refund.

First time buyer activity, supported by government schemes, is driving a shift in the housing market towards new builds and reshaping the mortgage landscape. This activity is creating a positive picture for those stepping onto the property ladder for the first time.

For guidance on leveraging these schemes to fulfil your homeownership aims, visit our website. And, for personalised advice and assistance with your mortgage needs, contact us today.