First-time buyers drive strongest August for mortgage approval values

Nationally, housing prices rose by an average of 3% during the second quarter of 2025. Pic: iStock

First-time buyers secured more mortgage approvals last month than in any August since records began, as the value of loans approved hit a new high for the month.

The figures from the Banking & Payments Federation Ireland (BPFI) show 5,083 mortgages worth €1.678bn were approved in August. Volumes were up 12.1% and values up 15.3% on the same month last year. This makes it the strongest August by value since the series began in 2011.

First-time buyers accounted for 3,024 approvals worth €1.008bn, about 60% of the total. It was the first time FTB approvals have topped €1bn in an August. In the 12 months to August, first-time buyer approvals reached 33,432, the highest on record, and their annualised value passed €11bn for the first time.

Approvals fell 18.7% from July, the busiest month on record, when 6,253 mortgages worth €2.04bn were approved. BPFI chief executive Brian Hayes said the easing reflected "the normal seasonal pattern", with approvals typically peaking between May and July.

"Mover purchase approvals also recorded strong growth, with their annualised value also reaching a new high of €4bn," he said.

“The wider annualised picture also remains positive. There were 55,854 mortgage approvals in the 12 months to August 2026, valued at almost €18.1bn, exceeding €18bn for the first time. This indicates there is a healthy base for mortgage drawdowns for the rest of the year.”

The average approval for a first-time buyer was €333,406 in August, up from €306,949 two years ago. The average mover loan was €396,557.

Mover purchase approvals rose 19% year on year to 982, but this was off a weak August 2025. The figure is still below every August from 2016 to 2024.

Switching activity rose sharply, with 686 re-mortgage approvals, up 36.1% on a year earlier, worth €213m.

Lending to landlords continued to shrink. Residential investment letting approvals fell 19.8% to 69, the lowest for any August since that category was introduced in 2014.

Rising mortgage approvals come as the global economy is expected to see further interest rate rises as persistent inflation continues.

In a report this week, the OECD said inflation around the world will be faster than forecast in 2027, an outlook that necessitates more tightening from the US to Australia. 

The US Federal Reserve, the European Central Bank and Bank of Japan all raising interest rates within little more than a week of each other.

“Faced with renewed energy price shocks and stronger-than-expected demand pressures, and at a time when inflation is already above target in many economies, central banks need to ensure that underlying inflation pressures are durably contained,” the OECD said in its report.