Mortgage Market Update:

Lending is on the rise with more and more consumers turning to Financial Brokers for mortgage services

Kimberley Hyland, Mortgage Manager, Brokers Ireland

As 2021 draws to a close Mortgage Brokers can reflect on the many challenges and changes that have taken place over the last 12 months. This year has seen the announcement from Ulster Bank confirming its exit from the Irish market, and KBC bank announcing they are in talks with Bank of Ireland. Supply and demand in the housing market remains a challenge to many buyers along with rising house prices. The Central Bank announced no changes to the restricting Macro-Prudential Rules except for allowing lenders to carry forward the proportion of loans, above limits, approved from one calendar year to the next. The help to buy scheme was extended until the end of 2022 with a review of the same expected next year. The ICB (Irish Credit Bureau) ceased its operations in October.

Not all news was bad news in 2021 with mortgage lenders continuing to support the residential mortgage market despite a rocky start to the year with COVID-19 restrictions that were in place during the first quarter. The latest mortgage data from BPFI shows continued strong growth in mortgage drawdowns and approvals. The report from Q3 in 2021 shows the following;

  • A total of 11,479 new mortgages to the value of €2,784 million were drawn down by borrowers during the third quarter of 2021

  • This represents an increase of 40.9% in volume and 42.3% in value on the corresponding third quarter of 2020.

  • A comparison with the previous quarter (Q2 2021) shows an increase of 19.3% in volume and 24.9% in value.

  • First-time buyers (FTBs) remained the single largest segment by volume 52.7% and by value 52.8%.

  • New properties (including self-builds) accounted for 26.6% of property purchase/build mortgages in Q3 2021, down from 37.6% in Q3 2020.

2021 has seen significant competition from lenders in the intermediary section, with rate reductions, some rates as low as sub 2%. The welcomed introduction of long-term fixed rates hit the market in Q2 this year and have been a popular choice for consumers seeking long term stability from their mortgage. Cashback for both new mortgages and switchers has remained a sought-after incentive, while the green rates have been in demand for those energy efficient homes.

Most of the loans issued over the previous decade and longer (outside of those lucky enough to be on a tracker rate) could save a staggering amount on the cost of credit over the remaining term of their mortgage by switching to a new provider. Brian Hayes, Chief Executive BPFI reported that Switching activity grew massively in September 2021, with volumes up by 36.6% year on year and almost 7,000 switcher mortgages approved in the twelve months ending September 2021, the highest annualized level on record. This is showing that the consumers are open to change.

Lending is on the rise with more and more consumers turning to Financial Brokers for mortgage services. The Intermediary market share is very positive. Infact figures for Q3 indicate that Intermediary market share is at 41% overall.

  • Quarter
  • Q4 – 2019
  • Q4 – 2020
  • Q3 – 2021
  • First Time Buyer
  • 29%
  • 36%
  • 40%
  • Mover
  • 27%
  • 30%
  • 35%
  • Switcher
  • 33%
  • 42%
  • 55%
  • Overall Share
  • 29%
  • 35%
  • 41%

Mortgage Brokers have facilitated the mortgage consumer where branches could not, due to Covid restrictions, social distancing and lockdowns. Mortgage Brokers were able to set up virtual meetings with clients on Teams, Webex, Skype, goto or zoom meeting and arrange them at a time to suit the consumer. Of course the Broker can also offer an indepentant and impartial overview of the market and offer their clients mortgages that are only available via the Broker channel and in branch. Moreover the Mortgage Broker provides a choice to their clients.

“Cashback for both new mortgages and switchers has remained a sought-after incentive, while the green rates have been in demand for those energy efficient homes.”

While there have been many enhancements to products and various lender calculator changes throughout the past number of months, the criteria of mortgage lending has not changed. Outside of the Central Banks Macro-prudential rules on Loan to Income and Loan to Value remain the core principles. The very foundation of lending is the sustainability of income and affordability alongside the historically proven capacity to repay the loan amount each month from the earned income while having enough of your net income left to fund day to day needs. With more and more Mortgage Brokers gearing up to provide mortgages for consumers, it is pivotal to understand that without proving the basics as stated for income and affordability and providing the documentation required to confirm this, the lender will not be in a position to approve any business. The administration process in presenting a mortgage case is time-consuming but Brokers will benefit by collating a full application initially.

As a Mortgage Packager we can assist you in your mortgage business. The role of Brokers Ireland Mortgage Services is to liaise between the lender and the mortgage advisor, to undertake the administration associated with the application process. The mortgage unit will initially review your application to ensure it is not only packaged and presented in the best way possible, but advise you of any missing information or documents you need to obtain prior to submitting the case to the lender, which in turn results in less clarifications from the lender.

The mortgage unit provides information to authorised Mortgage Brokers on the various lenders and their products. Through our experience in handling high volumes of applications we are familiar with each lender’s specific criteria, requirements and niche areas. As a result, the packaging of the application we send to lenders is delivered to the required standard. The service we proved ensures that the growing mortgage market remains accessible to all mortgage authorised Brokers Ireland members. Brokers Ireland Mortgage Services are non-exclusive, meaning you can use your own agencies where you hold them and submit through our agency to banks you do not have a direct agency with.

If you want to develop and grow your Mortgage Business in 2022, or would like any further information on the services provided by Brokers Ireland Mortgage Services, please contact:
Kimberley Hyland, Mortgage Manager on 085 837 5602, or email