The average value of a mortgage drawn down during 2025 increased by 7.4%, an increase of over €21,000, with first-time buyers borrowing nearly €320,000 just to afford a home, new data from the Banking and Payments Federation, Ireland (BPFI) shows.
Overall, there were 46,358 mortgages drawn down during 2025 worth a combined €14.47bn — the highest value since 2008. This results in an average mortgage value of €312,136, an increase of 7.4% or €21,449 compared to the 2024 average.
For first-time buyers, the average mortgage size is even higher at €319,187, an increase of 7.1% or €21,334. First-time buyers (FTBs) continue to drive the mortgage market, accounting for 60% of the volume and 61% of the value of mortgage drawdowns in 2025.
New properties, including self-builds, accounted for 41% of first-time buyer mortgage volume and 43% of the value last year. The overall average mortgage value is brought down as it includes remortgaging/switching activity and top-up mortgages.
Mover purchase mortgages bucked the broader drawdown trend with volumes dropping to 8,782, the lowest level since 2014.
Chief executive of the BPFI Brian Hayes said while the number of first-time buyer mortgages on second-hand properties fell for the second year in a row, “the value of those mortgages exceeded €5bn for the first time since that data series began in 2005”.
“Meanwhile, there was positive momentum in the switching market with the value of drawdowns increasing by 57.3% in 2025. At almost €1.7bn, mortgage switching drawdowns reached their second-highest level since 2008,” he said.
During the last three months of the year, 13,593 new mortgages to the value of €4,324 million were drawn down by borrowers. This represents an increase of 4.5% in volume and 9.5% in value terms compared to the same period in 2024.
In terms of mortgage approvals, 53,264 mortgages were approved in 2025 valued at more than €16.9bn. There were 3,504 mortgages approved in December.
Mr Hayes said looking ahead for the rest of this year, the BPFI expects continued strong demand in the housing and mortgage markets.
“Potential mortgage output for 2026 looks positive, evident from the solid growth in mortgage approvals activity,” he said.
