Surging house prices mean first-time buyers are back borrowing amounts last seen during the disastrous property boom. The average mortgage amount approved for first-time buyers has gone above €200,000 to reach €201,928. In October last year the average was €192,928.
This is the first time the average approval amount for new buyers has hit this level since 2009.
A chronic shortage of properties and the Government’s help-to-buy incentive are prompting new buyers to borrow more. The higher borrowing comes as Central Bank rules on the size of deposits needed to get mortgage approval have been relaxed for new buyers. This chance means they can now get a mortgage with a 10% deposit.