Non-bank lenders 'a core part of mortgage market' as household debt rises by almost €2bn

Banks are still the largest domestic lenders to Irish households, accounting for €104.5bn

As of the end of March, Irish households had a combined €155.3bn in total outstanding loans — up by €1.85bn when compared to March 2024. Picture: iStock

Irish household debt has increased by nearly €2bn in the year to the end of March, as the total value of mortgage debt held by banks increased by over 3%, new data from the Central Bank of Ireland shows.

As of the end of March, Irish households had a combined €155.3bn in total outstanding loans — up by €1.85bn when compared to March 2024. Of that total, banks are the largest domestic lenders to Irish households, accounting for €104.5bn.

Mortgages account for 75% of total household loans as of the end of March, and this share has been steady in recent quarters.

The value of mortgage loans held by the banks stood at just under €84bn — up 3.75% year-on-year — while other household loans stood at just under €18bn, up 3% year-on-year.

The category of “other financial institutions” held €21.85bn in home loans as of the end of March, down 4%.

The overall share of household mortgages with other financial institutions has been quite consistent in recent quarters, accounting for 25% of the total. However, they are the dominant provider of household buy-to-let mortgages, providing 76% of these mortgages compared to the 24% from banks.

Total buy-to-let mortgage debt as of the end of March stood at €7.88bn.

The senior underwriter with Núa Money, Donal Magee, said the report shows that “non-bank lenders are filling a gap in the market by ensuring more people can access mortgage credit, particularly those whose circumstances fall outside the narrow criteria of the banks”.

“As the report confirms, non-bank lenders are now a core part of the Irish mortgage market and their presence is helping more families and individuals achieve their housing goals,” he said.