Bank of Ireland Mortgages received mortgage applications worth in excess of €0.5 billion from first time buyers during the first quarter of 2005, up 25% on the same time last year.
The bank said the trend reflected the strengthening purchasing power of first time buyers as a result of strong wage inflation, reductions in interest rates and stamp duty obligations.
One of the most significant recent developments in the first time buyer mortgage market is the reduction in stamp duty on second hand houses, introduced in the December 2004 budget. This has resulted in a 3% increase in first time buyers purchasing second hand houses in the four months following the budget, up to 43% from 40%.
Research from the bank also reveals that the combined average salary of first time mortgage applicants has risen by 64% in the past ten years, from €39,251 in 1994 to €64,409 in 2004.
Bank of Ireland Mortgages also revealed today that it has found a significant increase in the incidence of gift giving to first time buyers, with the average gift of €30,000. One in four first time mortgage applicants received a gift in 2004, compared to one in five in 2002.
But first time buyers also had an average individual savings of €16,500 before applying for their first mortgage.
The figures also reveal that more men purchase a property on their own - the split being 60% male and 40% female. This trend has been consistent since 1995.
The age of first time buyers is decreasing with the average age now at 32, down from 35 in 1990. The research shows a preference among first time buyers for houses, with 35% buying a semi-detached house, 21% a detached house, 15% a terraced houses, 14% a bungalow and only 12% an apartment.
The average first time buyer's mortgage now stands at €200,000, which translates to a monthly repayment of about €1,000.
