Applying for a mortgage in 2026 - Homebuyers Guide
- Wix Admin
- 1 day ago
- 4 min read
Entering the Irish property market in 2026 requires navigating a landscape of stabilising interest rates. This guide provides the essential updates for your home-buying journey for 2026.
What are the Central Bank mortgage lending rules?
Understanding the Central Bank mortgage lending rules is essential for anyone planning on taking out a mortgage and buying a home in 2026. These lending rules were introduced by the Central Bank to encourage prudent borrowing & to protect the housing market. The Central Bank mortgage lending rules have significantly influenced Ireland’s housing market, creating a more stable and sustainable property market.
What do you need to know if you’re applying for a mortgage in 2026?
The Irish mortgage market is constantly evolving. Over the past 12 months we’ve seen mortgage rates fall as the Central Bank have reduced key interest rates.
Following the volatility of previous years, 2026 is characterised by rate stability.
· Current Rate Range: Rates typically range from 3% to over 6%.
· Average Rate: The average market rate has settled around 3.5% to 3.7%.
· Market Outlook: Major downward trends are not expected this year; instead, lenders are making selective "tweaks" in order to stay competitive.
· Strategy: Fixed rates (3–5 years) remain the preferred choice for certainty.
How much can I borrow?
Lenders will assess a mortgage application based on your ability to repay the mortgage and that you have a minimum 10% deposit saved to go towards the purchase.
The Central Bank mortgage rules will result in loans being capped (based on your income) in order to maintain affordability. However lenders interpretation of “allowable income” can differ slightly e.g. if your income includes variable elements such as bonuses, overtime, commissions, or allowances
- First-Time Buyers can borrow up to 4 times their gross annual income.
- Second time and subsequent Buyers are normally limited to borrowing 3.5 times income.
- Mortgage Switchers are exempt from the lending rules if they doing a straight mortgage switch to another bank( in order to get better terms)
· Fresh Start Principle: If you are divorced, separated, or have undergone insolvency and no longer have an interest in your previous home, you may be treated as a First-Time Buyer.
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Exceptions are available to allow you to borrow more than the Central Bank levels. For a first time buyer this means you could potentially borrow up to 4.75 times income and for second and subsequent buyers the maximum is 4.5 times allowable income.
Can I Get a Mortgage Exception?
In order to get a mortgage exception you must meet specific criteria. Exceptions are limited and at the discretion of the lender
- Loan To Income Exceptions: A percentage of loans can exceed the LTI cap, which allows borrowers to access higher amounts at more than 4 times LTI.
- Loan To Value Exceptions: There is some flexibility here for certain buyers, for example those with a strong financial profile or unique circumstances. However usually banks will not allow borrowings over 90% LTV.
What Government supports are available?
There are government supports available but they are limited and not available to everyone.
The Help to Buy, First Home Scheme, and Local Authority Affordable Purchase schemes provide great support, however they are limited to new-build homes.
· First Home Scheme or FHS will bridge the gap between your mortgage and deposit and the purchase price, giving up to 30% of the property’s value.
· The Help to Buy Scheme offers up to €30,000 (or 10% of the purchase price) as a tax rebate for new-build homes. This can be used as part of your deposit. This scheme has been extended to the end of 2029.
· The Local Authority Affordable Purchase Scheme (LAAP) helps eligible applicants buy a home at a discount to the home’s market price.
The Vacant Property Refurbishment Grant offers significant funding for renovating properties that have been vacant for two years or more.
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Should I review and switch my mortgage?
Once you secure your mortgage doing regular reviews is advisable can save you money. As property values rise and the balance you have to pay off on your mortgage decreases, your loan-to-value (LTV) improves which means that you may be eligible for better rates. If your fixed rate is due up this year, it is worth reviewing, as rates are now the lowest they have been in 4 years.
What are the housing market realities for 2026?
· Price Growth: National house prices are forecast to grow this year albeit at a more moderation that previous year
· Supply Scarcity: Second-hand listings remain at historic lows (approx. 13,000 nationally), making "turnkey" properties highly competitive.
· Energy Efficiency Premium: Homes with high BER ratings (A or B) attract a premium due to lower running costs and eligibility for "Green Mortgage" lower interest rates.
· New Lenders: The potential entry of digital-first lenders like Revolut into the Irish mortgage market is expected to increase competition and choice for borrowers if/when they enter the market
What Should I Have On My Mortgage Application Checklist?
Lenders will assess your application based on four things
1. Income: Proven through steady employment or rolling contracts.
2. Repayment Capacity: Demonstrated over 6 months via savings, rent, or cleared loan repayments.
3. Deposit: At least 10%, plus extra for Stamp Duty (1%) and legal fees (budget approx. €3k–€5k).
4. Credit History: A clean credit record is essential for approval and better rate offers.
Buying a house in 2026
Getting a mortgage in 2026 is challenging, but staying well informed and asking for advice and guidance is key. At Citywide Financial we specialise in helping borrowers get to grips with lending rules and their implications. We work with our clients to secure the best possible outcome for their mortgage including free mortgage consultations and reviews, advice on exceptions and guidance through every step of the paperwork.
If you are not sure where to start then contact our mortgage team
(01) 513 8710
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