Mortgage lending at wholesale intermediary MBS, which is jointly owned by financial services group IFG and GE Capital Woodchester, grew by 40% last year to €1.2 billion.
IFG said the regular home purchase still accounted for half of all mortgage business, but there had been a significant shift within this market. It said more than 90% of retail mortgage applicants were now choosing new homes over second-hand, up from 81% in 2003.
But it said the demand for investment properties fell last year, blaming a move towards overseas properties. The average mortgage for investors dropped from €233,000 in 2003 to €195,000, while there was a trend towards smaller properties.
From its figures, the company estimated that the majority of first-time buyers would benefit from changes in stamp duty in the Budget, adding that this was likely to increase the number opting for second-hand homes. The average mortgage size for first-time buyers grew by 9% last year.
