Latest news with #BPFI
RTÉ News
8 hours ago
- Business
- RTÉ News
First time buyer property and mortgages rise significantly
One in three first time buyer (FTB) homes were valued over €400,000 in 2024, three times the 2019 share, according to the latest BPFI mortgage report. The Mortgage Market Profile Report H2 2024, by Banking and Payments Federation Ireland shows that there has been a significant increase in FTB property and mortgage values between 2019 and 2024, as well as an increase in mortgage repayments and incomes. This latest report in the series, looks at the profile of borrowers, their loans and property types on a national and regional basis. For first time buyers the median property value rose by over €100,000 between 2019 and 2024, up 37% to almost €372,000. During the same period the median mortgage value increased by €78,000, or 36%, to almost €294,000. While the median basic household income for first time buyers increased by 22% from €70,000 in 2019 to €85,000 last year. There was also an increase in the share of higher value mortgages, over €300,000, which doubled to 44%. The share of lower value mortgages, up to €200,000 more than halved to 21%. Speaking on RTÉ's Morning Ireland BPFI CEO Brian Hayes said the increasing house price inflation is no great surprise because we have too many people chasing too few homes. "It highlights the kind of pressures that the first time buyer is in, where on average they have to get a lending position just short of €300,000 and on average they're buying a House of about €370,000. "Now the other side of that is, of course, that over the same five year period the average increase in first time buyer incomes is up about 22%., so you have this kind of perfect storm, a lot of people chasing too few houses, incomes rising and the economy at full tilt. "And I think there are particular issues for first time buyers, which I think everyone recognizes." The Central Bank has this week revised downwards its forecast for how many homes will be built this year ( to 32,500) and over the following two years. Mr Hayes noted that the banks are fundamental to the financing of not just mortgages, but also to the financing of development finance, adding that a third of all the homes built in the last two years have been built by the Irish banking sector in terms of development finance. "What's critically important is that we get international capital back, the big difference in the last two years has been the the fall off in international capital. "My message is that international capital goes where its welcome and it stays where it's well treated and it wants to see consistency. "I think the international capital that is critical for apartment development, the banks play a big role in that, not only do we take part of the lending position there, but we also act with international capital, because we have distribution models, we know the economy and we know the sectors. "International Capital Partners with the banking sectors here in Ireland and we need that partnership up and running again and I hope the certainty that the government have now given on the rent pressure zone will help that international capital to come back to the country."
Irish Times
11 hours ago
- Business
- Irish Times
Median value of homes bought by first-time buyers has risen to nearly €372,000
The median first-time buyer property value rose by more than €100,000 between 2019 and 2024 to almost €372,000, data shows. The latest Mortgage Market Profile Report from lobby group Banking & Payments Federation Ireland (BPFI) shows a big increase in first-time buyer property and mortgage values and a rise in mortgage repayments. The report, which covers the second half of last year and includes a comparison between 2019 and 2024, showed the median first-time buyer property value rose 37 per cent. It also said one in three first-time buyer homes exceeded values of €400,000 last year, three times the 2019 share. READ MORE It also showed that the median first-time buyer mortgage value increased by €78,000, or 36 per cent, between 2019 and 2024 to almost €294,000. [ Irish house price inflation at 7.5% in April as supply shortages bite Opens in new window ] Over the period, the share of higher-value first-time buyer mortgages, classed as being above €300,000, more than doubled to 44 per cent. The share of lower-value mortgages, classed as being up to €200,000, more than halved to 21 per cent. Meanwhile, median first-time buyer monthly mortgage repayments jumped by 48 per cent to €1,400 last year, up almost €500 on median repayments in 2019. This comes as the median basic household income for first-time buyers increased by 22 per cent from €70,000 in 2019 to €85,000 last year. The median mover income increased 23 per cent to €120,000, up €22,000 over the period. More than half (56 per cent) of first-time buyer mortgages in 2019 had repayments up to €1,000, but this dropped to 19 per cent in 2024. Meanwhile, 58 per cent of mover mortgages had repayments over €1,500 last year, up from 33 per cent five years earlier. BPFI chief executive Brian Hayes said the home mortgage market in Ireland had 'changed significantly in the past five years, as buyers shift to higher value properties'. 'While the share of first-time buyer properties valued at over €400,000 in 2024 trebled since 2019 to 36 per cent, almost two-thirds of mover properties were valued at over €400,000 in 2024,' he said. Mr Hayes said the increase in property prices and mortgage values have come as the median basic household income for first-time buyers increased by 22 per cent from €70,000 in 2019 to €85,000 last year. The median mover income increased by €22,000, or 23 per cent, over the same period to €120,000. Taking last year, the number of first-time buyer mortgage drawdowns rose by 2.5 per cent year-on-year to 26,242, but the value of first-time buyer drawdowns increased by 8.4 per cent to more than €7.8 billion, the highest value since 2006. Mover purchase or home mover activity declined, with volumes down by 6.3 per cent year-on-year to 9,030, but values rose by 1.9 per cent to almost €3.2 billion. The average first-time buyer and home mover mortgage values both reached their highest levels since the data series began in 2003, at €298,073 and €351,479 respectively. Within the first-time buyer market, the number of mortgages to buy or build new properties increased by 13.4 per cent to 9,755, the highest volume since 2008. While the number of first-time buyer mortgages on existing properties fell by 2.9 per cent to 16,487, the value of those mortgages reached the highest level since the data series began in 2005, at almost €4.7 billion. Mover new mortgage volumes fell by 1.4 per cent year-on-year to 1,972 in 2024, the lowest volume since 2015.
Irish Examiner
a day ago
- Business
- Irish Examiner
First-time buyer average income grew by €15k while home values increased by €100k, says report
The average basic income of first-time buyers seeking a mortgage grew to €85,000 during 2024 as their average mortgage size also stood at just under €300,000, new data from the Banking and Payments Federation, Ireland (BPFI) shows. As part of its latest Mortgage Market Profile Report for the second half of 2024, the BPFI compared the mortgage values and income level of buyers with levels seen in 2019. It found that in the five-year period, the median basic household income for first-time buyers looking to purchase a home increased by 22% from €70,000 in 2019 to €85,000 last year. In that same period, the median first-time buyer mortgage value increased by €78,000, or 36%, to almost €294,000. The property value of the homes first-time buyers are looking to purchase increased by over €100,000 over that five-year period to almost €372,000. It also found that 36% of first-time buyers' homes exceeded values of €400,000 in 2024, three times the 2019 share. Regional breakdown In terms of a regional breakdown, the BPFI said that all areas saw a substantial increase in median mortgage values with the median first-time buyer mortgage value increasing by €90,000 or more in three regions which included Wicklow, Galway and the Midlands. Brian Hayes, chief executive of the BPFI, said these figures reflect the 'broader housing price trends with the national median residential property price increasing from €259,000 in 2019 to €355,000 in 2024'. 'On a regional basis, more than half of first-time buyer properties in Wicklow, 64%, and Dublin, 58%, were valued at more than €400,000. By contrast, more than 85% of first-time buyer properties in Limerick and the Border, Midlands, South East, West and South and Mid West regions were valued up to €300,000.' Mr Hayes added that the average home mortgage value reached 'new peaks in 2024' a trend which has continued into the start of 2025. The median average mortgage payment for first-time buyers has also risen by almost €500 to €1,400 since 2019. 'Four out of 10 first-time buyer mortgages had repayments over €1,500 and in three regions. Wicklow, Dublin and Kildare, more than half paid more than €1,500,' Mr Hayes said. Mover-purchasers The average household income of a mover-purchaser increased by 23%, or by €22,000, to €120,000 over the same timeframe. More than half, 58%, of mover mortgages had repayments over €1,500 in 2024, up from 33% five years earlier. The average monthly repayment for a mover-purchaser mortgage stood at €1,717 in 2024. Dublin had the highest median property and loan values as well as basic household incomes of all customer types during the second half of 2024. Cork was the second largest county market last year accounting for 11.7% of first-time buyers and 10% of mover-purchasers. With 3.3% of total home mortgage drawdowns in the latter half of 2024, Limerick continued to be the smallest region in the country for mortgage activity. Read More First-time buyers fuel rise in mortgage approvals
Extra.ie
2 days ago
- Business
- Extra.ie
Holidaymakers warned as fraudsters 'ramp up' summer scams
Irish holidaymakers are being urged to be on high alert when it comes to booking their trips away this summer with last minute travel deals an easy way for scammers to catch people out. It can be easy to get swept up in the madness of booking holidays and being won over by limited time offers at discounted prices, but many fraudsters use these tactics to target consumers. Those booking holidays this summer are being warned to be vigilant when following websites, adverts and links online. Irish holidaymakers are being urged to be on high alert when it comes to booking their trips away this summer with last minute travel deals an easy way for scammers to catch people out. Pic: Getty Images Head of Financial Crime at BPFI (Banking & Payments Federation Ireland) Niamh Davenport confirmed that fraudsters were 'ramping up activity' in order to take advantage of unsuspecting holidaymakers. Ms Davenport is also the lead for the FraudSMART campaign, a fraud awareness initiative developed by BPFI in conjunction with AIB, Bank of Ireland, Permanent TSB, Ulster Bank, An Post Money and Barclays. She said: 'Travel scams can be incredibly convincing and often appear on fake and copycat websites featuring logos and layouts that closely mimic well-known brands. Head of Financial Crime at BPFI (Banking & Payments Federation Ireland) Niamh Davenport confirmed that fraudsters were 'ramping up activity' in order to take advantage of unsuspecting holidaymakers. Pic: Shutterstock 'The scams are targeted at consumers through online adverts and social media posts, often imitating legitimate travel companies or well-known booking platforms.' Ms Davenport added that often the link or website will disappear following payment being made by the consumer. 'Some victims may even receive a fake booking confirmation and only discover the scam after they have travelled to the destination and find the accommodation doesn't exist when they arrive,' Ms Davenport added. 'Some victims may even receive a fake booking confirmation and only discover the scam after they have travelled to the destination and find the accommodation doesn't exist when they arrive,' Ms Davenport added. Pic: Getty Images The red flags that consumers should look out for include being asked to pay via bank transfer or being pressurised. 'It's important to take a moment and double check the offer is authentic by visiting the official website of the travel company directly rather than clicking on a link in an email or advert,' she advised. 'Our Scamchecker tool also provides consumers with a free and simple way to verify the legitimacy of a website or link before making a booking.' Others tips and tricks to safeguard against travel scams this summer include using a secure WiFi; keeping a record of your order and purchase details and ensuring your computer's security is up to date with reliable anti-virus and browser software. FraudSMART aims to raise consumer and business awareness of the latest financial fraud activity and trends and provide simple and impartial advice on how best they can protect themselves and their resources.
Irish Independent
2 days ago
- Irish Independent
Irish holidaymakers warned to be on ‘high alert' as travel scams through online adverts on the rise
Consumers have been urged to look out for fraudsters targeting people with 'limited time offers' and 'last-minute travel deals'. These scams often appear through 'highly convincing' fake websites, online adverts and social media links. The warning was issued by FraudSmart, the awareness initiative led by the Banking & Payments Federation Ireland (BPFI). FraudSmart's head of financial crime Niamh Davenport said fraudsters 'are ramping up activity to take advantage of holidaymakers' now the summer season has arrived. 'Travel scams can be incredibly convincing and often appear on fake and copycat websites featuring logos and layouts that closely mimic well-known brands,' she said. 'The scams are targeted at consumers through online adverts and social media posts, often imitating legitimate travel companies or well-known booking platforms. 'However, once payment is made — often by bank transfer — the website or link disappears, leaving victims without a booking and out of pocket. 'Some victims may even receive a fake booking confirmation and only discover the scam after they have travelled to the destination and find the accommodation doesn't exist when they arrive.' Ms Davenport said there are 'red flags' for consumers to look out for, including being asked to pay for a booking via bank transfer or being put under pressure to act quickly. She said taking a moment before paying 'can make the difference between the holiday of a lifetime or a holiday disaster'. 'Importantly, don't be afraid to ask for help if something does go wrong. We would all like to believe that we'd spot a scam if we saw one, but the reality is that these scams can be very deceptive,' Ms Davenport added. 'If you think you have fallen victim to a travel scam, contact your bank immediately using the number on the back of your debit or credit card and report the incident to the Gardaí." FraudSmart has issued a number of tips to safeguard against travel scams this summer, including using 'trusted and well-known booking website or travel agents'. Consumers can also use FraudSmart's online Scamchecker tool to verify whether a website or link is legitimate. Unexpected offers claiming to offer cheap holiday deals, including unsolicited emails or social media ads, should be verified by visiting the travel company's official website instead of clicking on links in emails or ads.
