{"id":218283,"date":"2025-12-30T15:42:09","date_gmt":"2025-12-30T15:42:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/218283\/"},"modified":"2025-12-30T15:42:09","modified_gmt":"2025-12-30T15:42:09","slug":"rise-of-non-bank-lenders-strengthens-position-of-brokers-in-irish-mortgage-market-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/218283\/","title":{"rendered":"Rise of non-bank lenders strengthens position of brokers in Irish mortgage market \u2013 The Irish Times"},"content":{"rendered":"

The number of aspiring homebuyers<\/a> using brokers to secure a mortgage offer<\/a> has jumped by 75 per cent over the past six years, according to industry data.<\/p>\n

Figures from the Banking and Payments Federation Ireland<\/a> (BPFI), which represents lenders, show that mortgage brokers\u2019 share of the overall home loans market has jumped from just over a quarter back in 2019 to just shy of one half this year, according to Martina Hennessy<\/a>, chief executive of Doddl.ie.<\/p>\n

She said the BPFI data also showed that most people looking at switching their mortgage for a better rate now go through the broker channel. <\/p>\n

Over the last 12 months, approximately \u20ac6 billion worth of mortgages were taken out via a brokers, Ms Hennessy said. That compares with \u20ac2.48 billion in 2019.<\/p>\n

Among the factors driving growth in the broker market, Ms Hennessy believes, is a fundamental shift in consumer behaviour driven by greater awareness of and comfort with digital channels.<\/p>\n

\u201cYounger borrowers increasingly do not have a primary relationship with a traditional retail bank, managing their finances digitally rather than having a branch connection,\u201d she said. \u201cThey don\u2019t have the same emotional or historic connection to their bank and are comfortable seeking impartial advice that gives them access to the full range of choices.\u201d<\/p>\n

Some of the growing number of non-bank lenders that have entered the market have also chosen to operate only through the broker channel. <\/p>\n

\u201cFor non-bank lenders, including recent entrants Nua Money and MoCo, brokers are not an alternative channel, they are the channel,\u201d Ms Hennessy said. \u201cThey rely on brokers to provide advice, suitability assessment and borrower support, allowing them to scale distribution efficiently.\u201d<\/p>\n

These newer lenders are also more actively pursuing borrowers whose profile does not fit the pattern traditional banks have relied on \u2013 people in permanent jobs with regular income.<\/p>\n

[\u00a0Share of mortgage lending to landlords has halved since 2020, Central Bank data showsOpens in new window<\/a>\u00a0]<\/p>\n

People who are self-employed, those who rely on multiple and less predictable income streams and those whose lives have been upended by separation and divorce can find these non-bank lenders more open to accommodate them.<\/p>\n

The same is true for people who have taken a number of years out in their late twenties and early thirties to travel abroad before returning home to settle down.<\/p>\n

A recent independent KPMG survey commissioned by Doddl.ie identified consumer frustrations, including lengthy approval times, complex or confusing paperwork and the conveyancing process. While all three areas have improved in recent years, Ms Hennessy said further simplification is needed.<\/p>\n

\u201cDigital entrants have reduced friction by introducing digital processes around documentation. Open Banking facilitates faster decisions and a digital closing process is aiding the flow of documentation and information between bank and solicitor,\u201d she said. \u201cApproval decisions are increasingly made in days rather than weeks.\u201d<\/p>\n

Another factor boosting the broker market has been the growing interest rate gap between competing products, with the highest now more than double the lowest. That has encouraged more people to consider switching mortgage, especially once they have built up some equity in their home.<\/p>\n

[\u00a0What does the housing market have in store in 2026? Property experts weigh inOpens in new window<\/a>\u00a0]<\/p>\n

Six in 10 people switching are now operating through a broker in their search for the best deal, Ms Hennessy says, up from 40 per cent six years ago. That KPMG survey found that younger borrowers \u2013 those aged between 18 and 34 \u2013 with mortgage balances of more than \u20ac300,000 were more likely to consider switching.<\/p>\n

However, despite a significant increase in the annual savings available to households compared with 2020, overall switching volumes remaining relatively low. <\/p>\n

Ms Hennessy expects the trend towards mortgage switching to accelerate as digital-first lenders continue to enter the mortgage market, noting that fintechs such as Revolut are expected to launch mortgage offerings next year, offering additional further choice and further challenging the incumbents.<\/p>\n

\u201cAn active switcher market creates rate discipline and attracts new entrants, which is critical for competition,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"The number of aspiring homebuyers using brokers to secure a mortgage offer has jumped by 75 per cent…\n","protected":false},"author":2,"featured_media":218284,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[8582,72,113311,61,60,113312,68277,16487,12966,8581],"class_list":["post-218283","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-banking-and-payments-federation-ireland","tag-business","tag-doddl-ie","tag-ie","tag-ireland","tag-martina-hennessy","tag-moco","tag-mortgages","tag-nua-money","tag-revolut"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/218283","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=218283"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/218283\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/218284"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=218283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=218283"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=218283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}