Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Mortgages - Ireland - March 2017

"Having been turned upside-down and inside-out by the financial crisis and ensuing economic recession, the mortgage market in Ireland has somewhat stabilized, but with the Brexit presenting a threat to consumer confidence in 2017, this may see willingness to buy a house decline once again."

Brian O’Connor, Senior Consumer Analyst

This report looks at the following areas:

  • Positive outlook for both Irish economies
  • House prices in NI and RoI increasing, but still below boom levels
  • Rents at all-time high in RoI, and rising fast in NI
  • Mortgage rates low in NI, but comparatively high in RoI

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Issues covered in this Report
        • Definitions
        • Executive Summary

            • The market
              • Figure 1: Value of outstanding mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
            • Forecast
              • Figure 2: Indexed value of mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
            • Market factors
              • Positive outlook for both Irish economies
                • House prices in NI and RoI increasing, but still below boom levels
                  • Rents at all-time high in RoI, and rising fast in NI
                    • Mortgage rates low in NI, but comparatively high in RoI
                      • The consumer
                        • Mortgages owned currently by around one in three consumers
                          • Figure 3: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, NI and RoI, January 2017
                        • Fixed rates most popular in NI, variable rates in RoI
                          • Figure 4: Type of mortgage that consumers currently have on their main home, RoI and NI, January 2017
                        • Around four in five consumers do not intend to apply for a mortgage
                          • Figure 5: If consumers are considering applying for a mortgage within the next 12 months, NI and RoI, January 2017
                        • Most consumers solicited professional advice on taking out mortgage
                          • Figure 6: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
                        • Consumers see brokers offering convenience, but want personal touch
                          • Figure 7: Agreement with statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
                        • What it means
                        • The Market - What You Need to Know

                          • Positive outlook for both Irish economies
                            • House prices in NI and RoI increasing, but still below boom levels
                              • Rents at all-time high in RoI, and rising fast in NI
                                • Mortgage rates low in NI, but comparatively high in RoI
                                • Market Size and Forecast

                                    • Value of outstanding mortgage debt fell below €100 billion in 2016
                                      • Figure 8: Value of outstanding mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
                                    • Market not expected to return to growth until 2020
                                      • Figure 9: Indexed value of mortgage debt, actual, estimated, forecast and projected, IoI, NI and RoI, 2012-21
                                    • Increase in number of mortgages issued in NI in 2016
                                      • Figure 10: Total number of loans advanced for house purchase and re-mortgage, NI, 2010-16
                                    • Volume of mortgages up 9% in RoI in 2016
                                      • Figure 11: Total number of mortgage drawdowns, RoI, 2006-16
                                      • Figure 12: Volume mortgage drawdowns, % of total, by mortgage type, RoI, Q4 2016
                                    • Value of mortgages issued in RoI up 17% in 2016
                                      • Figure 13: Total value of mortgage drawdowns, € million, RoI, 2006-16
                                      • Figure 14: Value mortgage drawdowns, % of total, by mortgage type, RoI, Q4 2016
                                  • Market Drivers

                                    • Economic prospects still positive for Irish economies
                                      • Figure 15: Economic growth, forecast and projected, NI and UK, 2016-18
                                      • Figure 16: Key economic indicators, annual % change, RoI, 2016 and 2017
                                    • More than a quarter rate own finances as being 'healthy'
                                      • Figure 17: How consumers rate their current financial situation, NI and RoI, January 2017
                                    • Steady increase in proportion of RoI consumers rating own finances as 'healthy'
                                      • Figure 18: Consumers who rate their current financial situation as being 'healthy', NI and RoI, 2014- 17
                                    • Moderate house price growth - but prices nowhere near boom levels
                                      • Figure 19: Residential property prices, annual % change, NI and RoI, index, NI, 2007-16
                                      • Figure 20: Residential property price index, NI, 2007-16
                                      • Figure 21: Residential property price index, RoI, 2005-16
                                    • Spiralling rents reaching all-time high in RoI
                                      • Figure 22: National Rent Index, RoI, 2006-17
                                    • Renting more expensive than purchasing via mortgage loan
                                      • Figure 23: Average mortgage payment versus average rent payment, RoI, Q4 2016
                                    • Property purchase becoming less affordable for RoI consumers
                                      • Figure 24: Affordability index for two-earner household with 30-year mortgage, RoI & Dublin, 2008-16
                                    • Rents rising faster in NI than anywhere in UK
                                      • Figure 25: Average residential rent, % annual increase, UK (incl NI), January 2017
                                      • Figure 26: Average residential rent, £ per month, UK (incl NI), January 2017
                                    • Rent affordability remains higher in NI than in UK overall
                                      • Figure 27: Household rent to income ratio, %, UK (incl NI), January 2017
                                    • Buying property less expensive than renting property for NI consumers
                                      • Figure 28: First-time buyer average monthly buying and rental costs, UK and NI, December 2016
                                    • Mortgage rates in RoI declining, but still twice euro area average
                                      • Figure 29: Mortgage interest rates on principal dwellings, floating and fixed rates, RoI, 2014-16
                                    • NI mortgage rates at all-time lows, but higher rates likely
                                    • What You Need to Know – Companies and Innovations

                                      • Political uncertainty could impact mortgage ‘rates war’
                                        • Unemployment rate in NI and RoI
                                          • Property prices in NI rise but sales reduce
                                            • Repossessions across IoI remain a threat to occupants and an inhibitor for those trying to get on the property ladder
                                            • Who’s Innovating?

                                              • Digital innovations continue to change mortgage industry
                                                • Nationwide launches the Flexible Family Deposit Mortgage to help first-time buyers
                                                  • Pepper innovates and increases presence across RoI and UK
                                                  • Companies and Brands

                                                      • Allied Irish Bank
                                                        • Key facts
                                                          • AIB mortgage products
                                                            • First Trust mortgage products
                                                              • Recent developments
                                                                • Bank of Ireland
                                                                  • Key facts
                                                                    • Mortgage products – Bank of Ireland NI
                                                                      • Mortgage products – RoI
                                                                        • Recent developments
                                                                          • Danske Bank
                                                                            • Key facts
                                                                              • Mortgage products
                                                                                • Recent developments
                                                                                  • Halifax
                                                                                    • Key facts
                                                                                      • Mortgage products
                                                                                        • Recent developments
                                                                                          • HSBC
                                                                                            • Key facts
                                                                                              • Mortgage products
                                                                                                • Recent developments
                                                                                                  • KBC Ireland
                                                                                                    • Key facts
                                                                                                      • Mortgage products
                                                                                                        • Recent developments
                                                                                                          • Nationwide
                                                                                                            • Key facts
                                                                                                              • Mortgage products
                                                                                                                • Recent developments
                                                                                                                  • Permanent TSB
                                                                                                                    • Key facts
                                                                                                                      • Mortgage products
                                                                                                                        • Recent developments
                                                                                                                          • Santander
                                                                                                                            • Key facts
                                                                                                                              • Mortgage products
                                                                                                                                • Recent developments
                                                                                                                                  • Ulster Bank
                                                                                                                                    • Key facts
                                                                                                                                      • NI mortgage products
                                                                                                                                        • RoI mortgage products
                                                                                                                                          • Recent developments
                                                                                                                                          • The Consumer – What You Need to Know

                                                                                                                                            • Mortgages owned currently by around one in three consumers
                                                                                                                                              • Fixed rates most popular in NI, variable rates in RoI
                                                                                                                                                • Around four in five consumers do not intend to apply for a mortgage
                                                                                                                                                  • Most consumers solicited professional advice on taking out mortgage
                                                                                                                                                    • Consumers see brokers offering convenience, but want personal touch
                                                                                                                                                    • The Consumer - Ownership of Mortgages

                                                                                                                                                        • Around a third of consumers currently have mortgage on home
                                                                                                                                                          • Figure 30: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, NI and RoI, January 2017
                                                                                                                                                        • Single consumers significantly less likely to have a mortgage
                                                                                                                                                          • Figure 31: Consumers who currently have a mortgage on the property they live in as their main home, by marital status, NI and RoI, January 2017
                                                                                                                                                        • Mortgage ownership peaks among 35-54-year-olds
                                                                                                                                                            • Figure 32: Consumers who currently have a mortgage on the property they live in as their main home, by age, NI and RoI, January 2017
                                                                                                                                                          • Employment a major factor in mortgage ownership
                                                                                                                                                              • Figure 33: Consumers who currently have a mortgage on the property they live in as their main home, by work status, NI and RoI, January 2017
                                                                                                                                                            • ABC1s far more likely than C2DEFs to have a mortgage
                                                                                                                                                              • Figure 34: Consumers who currently have a mortgage on the property they live in as their main home, by social class, NI and RoI, January 2017
                                                                                                                                                          • The Consumer - Type of Mortgage Owned

                                                                                                                                                              • NI preference for fixed rates, while variable rates prevail in RoI
                                                                                                                                                                • Figure 35: type of mortgage that consumers currently have on their main home, RoI and NI, January 2017
                                                                                                                                                              • Just over a third of Irish consumers on interest-only mortgage terms
                                                                                                                                                                • Sizeable minority do not know what sort of mortgage they have
                                                                                                                                                                • The Consumer - Future Intentions

                                                                                                                                                                    • Most Irish consumers do not intend to apply for a mortgage
                                                                                                                                                                      • Figure 36: If consumers are considering applying for a mortgage within the next 12 months, NI and RoI, January 2017
                                                                                                                                                                    • Rejection of notion of mortgage application growing in NI
                                                                                                                                                                      • Figure 37: Consumers who say they will not be applying for a mortgage within the next 12 months, NI and RoI, December 2014-January 2017
                                                                                                                                                                      • Figure 38: If consumers are considering applying for a mortgage within the next 12 months, by mortgage type, NI and RoI, December 2014-January 2017
                                                                                                                                                                    • Consumers aged 55+ least likely to apply for a mortgage
                                                                                                                                                                      • Figure 39: Consumers who say they will not be applying for a mortgage within the next 12 months, by gender and age, NI and RoI, January 2017
                                                                                                                                                                    • Full-time employees least inclined to reject idea of mortgage application
                                                                                                                                                                      • Figure 40: Consumers who say they will not be applying for a mortgage within the next 12 months, by work status, NI and RoI, January 2017
                                                                                                                                                                      • Figure 41: Consumers who say they will not be applying for a mortgage within the next 12 months, by social class, NI and RoI, December 2014-January 2017
                                                                                                                                                                    • Majority NI buyers either using or intend using Help to Buy ISA Scheme
                                                                                                                                                                        • Figure 42: If consumers are currently using, or planning to use a help to buy ISA scheme for an upcoming mortgage, NI, January 2017
                                                                                                                                                                    • The Consumer - Sources of Advice

                                                                                                                                                                        • Majority of consumers sought professional advice on mortgage
                                                                                                                                                                          • Figure 43: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
                                                                                                                                                                        • Preference for direct advice over independent broker
                                                                                                                                                                          • Figure 44: Selected sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
                                                                                                                                                                        • Significant minority rely on incomplete advice or unqualified sources
                                                                                                                                                                            • Figure 45: Selected sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, NI and RoI, January 2017
                                                                                                                                                                        • The Consumer - Attitudes towards Professional Advice and Sources of Advice

                                                                                                                                                                            • Mixed views and opinions about mortgage advice and advisers
                                                                                                                                                                              • Figure 46: Agreement with statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
                                                                                                                                                                            • Mortgage advisers believed to offer convenience and better deals
                                                                                                                                                                              • Figure 47: Agreement with selected statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
                                                                                                                                                                            • Personal recommendations, direct contact key when choosing adviser
                                                                                                                                                                              • Figure 48: Agreement with selected statements relating to professional mortgage advice and sources of mortgage advice, NI and RoI, January 2017
                                                                                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                            • Definition
                                                                                                                                                                              • Data sources
                                                                                                                                                                                • Abbreviations
                                                                                                                                                                                • Appendix - The Consumer

                                                                                                                                                                                  • NI Toluna data
                                                                                                                                                                                    • Figure 49: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 50: Type of mortgage that consumers currently have on their main home, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 51: If consumers are considering applying for a mortgage within the next 12 months, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 52: If consumers are currently using, or planning to use a help to buy ISA scheme for an upcoming mortgage, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 53: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 54: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, NI, January 2017 (continued)
                                                                                                                                                                                    • Figure 55: Agreement with the statement ‘I’m confident that I could get the best mortgage deal without professional advice’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 56: Agreement with the statement ‘I would be happy to get advice from a mortgage adviser via digital channels (eg via Skype, smartphone app, online chat)’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 57: Agreement with the statement ‘I think mortgage advisers provide good value for money’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 58: Agreement with the statement ‘I would be more concerned about my application being rejected if I applied for a mortgage without using an adviser’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 59: Agreement with the statement ‘I would only ever pay for advice if I could meet the adviser in person’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 60: Agreement with the statement ‘I think professional mortgage advice is better than information you can get for free’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 61: Agreement with the statement ‘I believe mortgage advisers have access to better deals than people arranging their mortgage independently’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 62: Agreement with the statement ‘I think it’s more convenient to arrange a mortgage/re-mortgage through a mortgage adviser’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 63: Agreement with the statement ‘I think it is worth paying more for an impartial mortgage adviser’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 64: Agreement with the statement ‘I am more likely to use a mortgage adviser that has been recommended by a friend/family member’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 65: Agreement with the statement ‘I am more likely to use a mortgage adviser due to the uncertainty around Brexit’, by demographics, NI, January 2017
                                                                                                                                                                                    • Figure 66: Agreement with the statement ‘I would ask my adviser for advice on co-ownership’, by demographics, NI, January 2017
                                                                                                                                                                                  • RoI Toluna data
                                                                                                                                                                                    • Figure 67: If consumers/consumers and their partner currently have a mortgage on the property they live in as their main home, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 68: Type of mortgage that consumers currently have on their main home, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 69: If consumers are considering applying for a mortgage within the next 12 months, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 70: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 71: Sources of advice that consumers used when consumers arranged their last mortgage/re-mortgage, by demographics, RoI, January 2017 (continued)
                                                                                                                                                                                    • Figure 72: Agreement with the statement ‘I’m confident that I could get the best mortgage deal without professional advice’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 73: Agreement with the statement ‘I would be happy to get advice from a mortgage adviser via digital channels (eg via Skype, smartphone app, online chat)’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 74: Agreement with the statement ‘I think mortgage advisers provide good value for money’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 75: Agreement with the statement ‘I would be more concerned about my application being rejected if I applied for a mortgage without using an adviser’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 76: Agreement with the statement ‘I would only ever pay for advice if I could meet the adviser in person, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 77: Agreement with the statement ‘I think professional mortgage advice is better than information you can get for free’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 78: Agreement with the statement ‘I believe mortgage advisers have access to better deals than people arranging their mortgage independently’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 79: Agreement with the statement ‘I think it’s more convenient to arrange a mortgage/re-mortgage through a mortgage adviser’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 80: Agreement with the statement ‘I think it is worth paying more for an impartial mortgage adviser’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 81: Agreement with the statement ‘I am more likely to use a mortgage adviser that has been recommended by a friend/family member’, by demographics, RoI, January 2017
                                                                                                                                                                                    • Figure 82: Agreement with the statement ‘I am more likely to use a mortgage adviser due to the uncertainty around Brexit’, by demographics, RoI, January 2017

                                                                                                                                                                                Companies Covered

                                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                Mortgages - Ireland - March 2017

                                                                                                                                                                                US $1,411.13 (Excl.Tax)