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 and close

Description

Description

"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's included

What's included

Table of contents

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

                                                                                                                                                                                About the report

                                                                                                                                                                                This report will give you a complete 360-degree view of your market. Not only is it rooted in robust proprietary and high-quality third-party data, but our industry experts put that data into context and you’ll quickly understand:

                                                                                                                                                                                • The Consumer

                                                                                                                                                                                  What They Want. Why They Want It.

                                                                                                                                                                                • The Competitors

                                                                                                                                                                                  Who’s Winning. How To Stay Ahead.

                                                                                                                                                                                • The Market

                                                                                                                                                                                  Size, Segments, Shares And Forecasts: How It All Adds Up.

                                                                                                                                                                                • The Innovations

                                                                                                                                                                                  New Ideas. New Products. New Potential.

                                                                                                                                                                                • The Opportunities

                                                                                                                                                                                  Where The White Space Is. How To Make It Yours.

                                                                                                                                                                                • The Trends

                                                                                                                                                                                  What’s Shaping Demand – Today And Tomorrow.

                                                                                                                                                                                Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted.

                                                                                                                                                                                Trusted by companies. Big and small.

                                                                                                                                                                                • bell
                                                                                                                                                                                • boots
                                                                                                                                                                                • google
                                                                                                                                                                                • samsung
                                                                                                                                                                                • allianz
                                                                                                                                                                                • kelloggs
                                                                                                                                                                                • walgreens
                                                                                                                                                                                • redbull
                                                                                                                                                                                • unilever
                                                                                                                                                                                • Harvard
                                                                                                                                                                                • pinterest
                                                                                                                                                                                • new-york-time