According to findings from Genworth Financial Mortgage Insurance, many now use unsecured lending to finance initial deposits, while 65 per cent with no deposit would pay a higher interest rate if it meant getting on the property ladder sooner.
30 and 40-year mortgage terms are also becoming more prevalent, with 50 per cent of Irish FTBs opting for this type of mortgage. The average national mortgage was four times the average gross household income, with this figure being 17 per cent higher in Dublin than anywhere else in the country.
Tonia McCallister, business development director at Genworth Financial Mortgage Insurance Business, said: “With spiralling house price appreciation and rising rates, access and affordability issues continue to stretch consumers. High loan-to-value deals are increasingly seen as a means of achieving earlier homeownership.”
Ken Sives, partner at Sives Financial Services, said: “The findings are unsurprising. Prices have risen at such a rate that FTBs cannot wait to get on the ladder as costs escalate beyond their reach. Many are taking out loans to finance a deposit, which may not be ideal, but many consider it a good short-term commitment as opposed to adding a loan to their mortgage.”
