Bank of Ireland first private lender in affordable housing market

Bank of Ireland has become the first private lender to enter the mortgage market for Affordable or Local Authority Housing.

The bank's 'Breakthrough' product offers customers loans of up to 97% on their houses. 'Breakthrough' customers will have to provide a 3% deposit on their house, compared to the 8% normally required from first-time buyers.

The bank estimates that 11,000 affordable homes will become available to home buyers over the next two to three years. Sole borrowers can borrow up to five times their income, and joint borrowers up to four and a half times their combined income, subject to the normal lending terms and conditions.