UK company has acquired Karl Deeter-led mortgage and insurance fintech business for up to €9 million.
The Irish mortgage market is poised for significant growth in the near future, driven by a robust domestic economy, rising property prices, and persistent housing supply shortages. Mortgage brokers are expected to play a crucial role in facilitating this growth, helping borrowers navigate affordability challenges and changing mortgage products.
Economic Growth and Property Price Trends
The Irish economy is experiencing rapid growth, with GDP forecast to reach 8.1% in 2025 [1]. This strong domestic demand, job creation, and consumer spending are underpinning the national property market. Property prices are expected to rise by around 5% over the next 12 months [2][5], despite affordability becoming a significant challenge, particularly for first-time buyers.
Residential property price inflation is evident nationally and particularly strong in Dublin and several other regions, with recent monthly gains boosting annual inflation into the 6-10% range in some areas [4]. Despite these affordability challenges, demand for mortgages remains robust, supported by an improving economic outlook and expectations of future ECB interest rate cuts [4].
Mortgage Brokers' Role in the Growth
Mortgage brokers act as intermediaries, helping borrowers identify suitable mortgage products and lenders. Their services are increasingly important as buyers face rising prices and complex loan options. The growing preference for floating rate mortgages (26% choosing floating rate in Jan 2025, up sharply from ~5% prior) indicates borrowers are seeking flexible financing arrangements, an area where brokers provide expert guidance [4].
Brokers can assist borrowers in addressing the widening affordability gap by packaging mortgage deals that meet specific financial profiles and navigating the competitive lending environment in Ireland. As housing supply constraints limit new home availability, brokers also help potential buyers optimize mortgage conditions for resales or alternative property types.
The Acquisition of AIF by Software Circle
The acquisition of Irish fintech company, Artificial Intelligence Finance (AIF), also known as OnlineApplication (AO), by London-listed Software Circle is anticipated to be earnings-enhancing and cash-generative in its first year. AIF, led by Karl Deeter, is linked to 60 mortgage brokers, five lenders, 200 life insurance intermediaries, and two life companies. The acquisition was made for an initial €5 million, with an additional €4 million payable in future, subject to performance targets [3].
With a target of 41,000 homes to be completed this year widely expected to be unmet [6], the Irish mortgage market is projected to expand to €14 billion this year [7]. The acquisition of AIF by Software Circle further underscores the potential for growth in the Irish mortgage market, with brokers playing a pivotal role in matching borrowers to appropriate mortgage solutions amid affordability pressures and evolving market conditions [1][2][4][5].
References
- ESRI
- Daft.ie
- Software Circle
- MyHome.ie
- Central Statistics Office
- Irish Independent
- Irish Times
- As the Irish mortgage market experiences growth, driven by robust business conditions and rising real-estate prices, investing in fintech companies that facilitate mortgage services could yield significant returns for technology-driven firms, such as the recent acquisition of Artificial Intelligence Finance (AIF) by Software Circle.
- The increasing role of mortgage brokers in finding suitable mortgage products, navigating market complexities, and addressing affordability challenges positions them as vital players not only in the current growth of the Irish mortgage market but also in the expanding technology-driven solutions for real-estate investments and business opportunities.
