The majority of first time buyers have little difficulty in meeting their mortgage repayments but 16pc find it difficult to meet their monthly repayments, new research carried out for the Irish Banking Federation (IBF) reveals.

Carried out by Amarach Consulting, the survey was based on a sample of 500 first time buyers and found that the majority had shopped around before selecting a lender, with their decision based on the best lending rate available over the life of the mortgage.

The buyers were also attracted to the mortgage which offered value over its full life rather than any discounts available over the first year of the loan.

IBF's chief executive, Pat Farrell, said the results present a very positive picture of the FTB market, a key segment now accounting for some 22pc by value of the total mortgage market.

"It is very reassuring that borrowers are exercising informed choice in what is a very competitive market and lenders are responding in a transparent and prudent way.

"And it is further reassuring to note that borrowers are in control of their repayments," he said.

The research found that three out of four first time buyers shop around when looking for a mortgage. It also found that the buyers understand the mortgage application process and the mortgage product chosen, while nine out of ten remain satisfied with their mortgage product.

First time buyers also tend not to worry about negative equity -- when the value of their property falls below the value of the mortgage.

Instead they regard the property purchase as their 'home' for the medium to long term with half expecting to stay in it for at least six years and a third having no plans to move.

Over half of all first time buyers -- 51pc -- opted to take out a fixed mortgage, with a further 18pc taking out a tracker mortgage and the remainder on a variable rate product.

Out of those selecting for a fixed rate product 46pc went for a two or three year fixed period, 26pc for one year, 19pc for between four and five and just 9pc opted for a fixed term of more than five years.