This week Tara Wylie of New Star Financial Management talks to Topic about the various schemes available to first time buyers.
How Affordable is Housing for First Time Buyers?
The latest Mortgage Market Profile Report (Feb 2025) by Banking & Payments Federation Ireland shows that Residential property prices increased by 8.7% year on year in December 2024 and MyHome data show prices increased by 8.4% year on year in Q4 implying continued house price gains in 2025.
What does this mean for First Time Buyers?
More than half of FTB draw downs (57%) now involve high-value mortgages of over €250,000 and high total household incomes (56%) of over €80,000, the highest proportions recorded either by BPFI or the Department of Housing.
The average age of main FTB borrowers increased to 35 for the first time while the share of FTB borrowers aged over 35 increased to 44%, up from 36% in 2019 and only 17% in 2004, according to historical data from the Department of Housing.
Supports for the First Time Buyer include the following:
The Help to Buy Scheme: If you are a first time buyer, this scheme ca-n help you with a deposit for a new or self-build home. You receive a refund on income and DIRT tax paid in Ireland in the last four years. The maximum amount of relief available is €30,000 and the scheme has been extended until 31st December 2029. The minimum Loan to Value (LTV) is 70% and the maximum value is €500k.
The First Home Scheme: For first time buyers, self-builders or those making a fresh start, this Shared Equity Sche-me provides finance to help you bridge the gap between a deposit and mortgage, and the price of a new home.
This scheme takes a percentage ownership of your home, which you can buy back later. It is also available to Tenants under the Tenants Home Purchase Scheme, for tenants served notice by their Landlords once they intend to sell the property. FTB’s can only borrow the maximum amount available (4 x gross income) and not be availing of an exception, in order to qualify. FTB’s also need to have their 10% deposit in place.
Contact the mortgage experts at New Star for more info on your FTB Mortgage.
For more information, call New Star on 044 933 5443, Email tara@newstarfm.ie or see www.newstarfm.ie
