Single Homebuyers Increase Mortgage Applications, Data Shows

Sole borrowers have begun to reclaim a more significant share of the mortgage market, according to new data from the Banking and Payments Federation Ireland (BPFI). Currently, single individuals account for one in ten mortgage drawdowns by first-time buyers, marking a slight increase over recent years. Nevertheless, this figure remains considerably lower than the nearly 50 percent recorded between 2005 and 2008.

The data indicates that in Dublin, 35 percent of first-time mortgage drawdowns were made by single applicants, with similar percentages observed in the western regions of Ireland. In contrast, areas such as Meath and Kildare reported that sole applicants constituted no more than a quarter of first-time mortgages. While most new mortgages continue to be drawn down by joint applicants, sole borrowers accounted for 31 percent of overall first-time buyer mortgages from June 2022 to June 2023.

Brian Hayes of the BPFI pointed out that although the values of home loans for sole borrowers are generally lower than those for joint borrowers, they are rising at a faster pace. The median mortgage value for joint first-time borrowers is currently €345,000, which is nearly €100,000 higher than the €248,000 median for sole borrowers. Despite the lower average, the amount borrowed by single buyers has seen more substantial increases.

In the first half of 2023, the number of first-time buyer mortgage drawdowns rose by 5.5 percent compared to the same period last year, reaching close to 12,000 applications. This represents the highest volume of first-time buyer drawdowns in a first half of the year since 2007. The total value of these drawdowns increased by 14.4 percent to €3.7 billion.

The activity of mover purchasers also experienced growth, with a 3.5 percent year-on-year increase, resulting in 3,947 mover mortgages. The value of these mortgages rose by 13.3 percent to nearly €1.5 billion. The average mortgage for first-time buyers reached its highest level ever, hitting €314,800, while mover values also peaked at €373,400.

The median household income for first-time borrowers rose by about €20,000 to nearly €90,000 between 2019 and 2022. Sole borrowers saw a less dramatic increase, with median incomes rising by approximately €16,000 to around €68,000 during the same timeframe. In the Dublin commuter area, roughly half of sole mortgages were drawn down by households earning up to €65,000, while fewer than one in ten had similar income levels in other regions.

Hayes highlighted that “the mortgage market continues to evolve, reflecting the diverse needs of today’s borrowers.” He emphasized the ongoing demand for housing, stating that it is crucial to deliver a wide range of housing options to meet the changing structures of households and affordability challenges.

The report also revealed that Dublin remains the largest market for first-time buyers, accounting for 31 percent of first-time mortgages and 40 percent of mover mortgages. The capital city also reported the highest median property values and income levels across all customer types for the first half of 2023.