Ireland Sees Highest Mortgage Drawdowns in Over a Decade

According to the latest figures, mortgage drawdowns in Ireland have increased significantly, reaching their highest level since before the financial crash. The second quarter of 2025 saw over 12,000 mortgages drawn down, with a total value of over €3.5 billion. This represents a significant increase from the same period last year, when just over 9,000 mortgages were drawn down. The average mortgage size has also increased, with the average first-time buyer mortgage now standing at over €270,000. The increase in mortgage drawdowns is being driven by a combination of factors, including low interest rates, government incentives, and a shortage of housing supply. The majority of mortgages drawn down were for first-time buyers, who accounted for over 50% of all mortgages. The average age of first-time buyers has also increased, with many now in their mid-to-late 30s. The increase in mortgage drawdowns is also being driven by an increase in switcher mortgages, as existing homeowners take advantage of low interest rates to switch their mortgage to a new lender. The number of switcher mortgages drawn down increased by over 20% in the second quarter of 2025, compared to the same period last year. The increase in mortgage drawdowns is a positive sign for the Irish economy, as it indicates that the housing market is continuing to recover from the financial crash. However, it also raises concerns about the affordability of housing, particularly for first-time buyers. The government has introduced a number of initiatives aimed at increasing the supply of housing and making it more affordable, including the Help-to-Buy scheme and the Rebuilding Ireland program. Despite these efforts, the shortage of housing supply remains a major issue, with many would-be buyers struggling to find affordable homes. The increase in mortgage drawdowns is also likely to put upward pressure on house prices, which could make it even more difficult for first-time buyers to get on the property ladder. The Central Bank has warned about the risks of a housing market bubble, and has introduced measures to try to prevent lenders from taking on too much risk. Overall, the increase in mortgage drawdowns is a complex issue, with both positive and negative implications for the Irish economy and housing market.

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