DUBLIN — Mortgage lending in Ireland reached record levels during the first half of 2026, with first-time buyers continuing to dominate the market despite ongoing affordability challenges.
New figures released by the Banking & Payments Federation Ireland (BPFI) show that 21,232 mortgages were drawn down between January and June, with a combined value of almost €6.8 billion.
The report reveals that borrowing by first-time buyers continued to strengthen, with mortgage drawdowns in the category rising 10.5% year-on-year to €4.1 billion. According to the BPFI, this is the highest first-half value recorded since its mortgage data series began in 2003.
The second quarter accounted for much of the activity, with 11,795 mortgages worth €3.75 billion drawn down between April and June. That represents an increase of 7.4% in volume and 11.1% in value compared with the same period in 2025. Compared with the opening three months of the year, drawdowns rose 25% by volume and 23.5% by value.
First-time buyers remained the largest group in the market, accounting for 58.8% of all mortgage drawdowns and 60.3% of their total value during the second quarter. Activity among borrowers switching or refinancing existing mortgages also increased, with drawdown volumes rising 13.6% and values climbing 24.8% from a year earlier.
Separate mortgage approval figures for June also pointed to continued demand.
A total of 5,631 mortgages were approved during the month, including 3,304 approvals for first-time buyers, representing almost 59% of all approvals. Home movers accounted for 1,062 approvals, or just under one-fifth of the monthly total.
Although approval numbers dipped slightly from May, they were 15.3% higher than in June 2025.
The total value of mortgages approved in June reached €1.86 billion, an annual increase of 19.7%. First-time buyers accounted for €1.11 billion of that figure, while mover purchasers represented €416 million.
The BPFI also reported that the annual value of mortgage approvals reached €17.6 billion in the twelve months to June 2026, marking the highest level since approval records began in 2011.
BPFI Chief Executive Brian Hayes said first-time buyers continued to underpin mortgage activity, with almost 6,950 mortgages worth €2.3 billion drawn down during the second quarter alone. He said this represented the strongest second-quarter performance for the group since records began more than two decades ago.
Hayes also noted that lending to home movers strengthened during the quarter, reaching its highest second-quarter value since 2008, while seasonal trends contributed to increased activity compared with the opening months of the year.
Demand for newly built homes also continued to grow. New properties, including self-builds, accounted for 38.6% of all home purchase mortgage drawdowns in the second quarter, up from 37% a year earlier.
Mortgage drawdowns for new homes rose 10.2% in volume and 14.9% in value compared with the same period in 2025. First-time buyers were the main driver of that growth, with lending for new-build purchases exceeding €1 billion during the quarter.
The market for second-hand homes also showed signs of recovery. More than 5,400 mortgages were drawn down for existing properties during the second quarter, with lending volumes increasing 2.9% year-on-year and values rising 4.8%. It was the first annual increase in second-hand property mortgage volumes since early 2025.
Hayes said mortgage approvals remain at record levels, with first-time buyer demand continuing to lead the market. He also highlighted a sharp increase in mortgage switching activity, reflecting growing competition among lenders and borrowers seeking better rates.
Editing by M10News Housing Desk | © 2026 M10News. All rights reserved. Unauthorised reproduction is prohibited.
