Mortgage providers processed 23% more requests in the first three months of this year, particularly in the big cities and more expensive provincial areas, according to figures from data firm HDN.

The number of requests in the four largest cities rose by nearly twice the national average, HDN said.

In total, 142,076 mortgage applications were submitted in the first quarter, with March the busiest month since 2022. The number of requests for new mortgages increased by 18%, while applications to increase an existing mortgage or switch to a different bank rose by 32%.

The rise is notable, HDN said, because banks raised mortgage interest rates at least twice during the period. The average loan for buying a new home was 7% higher, at €370,700.

“You might expect an increase in interest rates would depress the number of requests, but instead it has boosted the market,” said HDN director Reinier van der Heijden. “At the same time, we are seeing the impact of selling off rental homes, which has led to sharp growth in the number of buyers in the big cities.”