Mortgage approvals in Ireland fell sharply in August, with new figures showing a 17% decline compared to the previous month.
The latest Mortgage Approvals Report from the Banking and Payments Federation Ireland (BPFI) revealed that 4,536 mortgages were approved during the month, a 2.5% drop on the same period last year. The total value of approvals reached €1.456 billion, down 17.8% from July but still 4.1% higher than August 2024.
First-time buyers (FTBs) continued to dominate the market, accounting for 62.2% of all approvals with 2,822 mortgages, worth €920 million. Mover purchasers made up 18.2% of approvals, totalling 825 mortgages valued at €318 million.
Despite the monthly slowdown, annualised figures suggest the mortgage market is operating at historically strong levels. Brian Hayes, chief executive of the BPFI, said mortgage values in the twelve months to the end of August stood at €16.7 billion, the highest since records began in 2011.
“The annualised value of first-time buyer approvals also reached a new high, at almost €10.4 billion,” Hayes noted.
The report highlighted contrasting trends across different borrower categories. Re-mortgage and switching activity increased significantly, rising by 13.8% in volume and by 30.4% in value compared with the same month last year. In contrast, mover purchase activity continued to weaken, with approvals down 16.8% year-on-year.
However, mover purchasers are taking out larger loans than ever before. The average mover purchase mortgage approval climbed to €384,887 in August 2025, almost €31,000 higher than in the same month last year and the highest level since records began. First-time buyers also saw higher average loan values, with approvals up by €19,000 year-on-year to €325,934.
Hayes said the rising loan sizes “broadly reflect housing price inflation,” pointing to the impact of continued upward pressure on property prices.
The figures underline the challenges facing would-be homeowners in an environment of rising property values and shifting borrowing patterns. While first-time buyers remain the most active segment of the market, the fall in overall approvals suggests demand may be softening as affordability issues persist.
