First-time buyers need to find €42,000 on average from their own funds to secure a mortgage on their home, according to latest figures.

More people are taking out mortgages as rates fall, but the amount that people need to provide as a deposit is rising, mortgage data specialist Hypotheken Data Netwerk (HDN) said.

HDN recorded more 116,000 new mortgage contracts in the third quarter of 2024, a 22.5% increase on last year, 75,000 of which were taken out by house buyers.

The rest were used to fund extensions or renovations, make homes more energy efficient, or switch mortgage providers.

Existing owners moving up the housing ladder had to provide an average of €35,000 to secure a mortgage.

Market lending rates dropped below 4% in September for the first time in five years, but the amount people borrowed was 7% higher than a year ago, HDN said, reflecting higher house prices. The average amount borrowed in the third quarter of 2024 was €361,785.