Nama is stepping up efforts to entice buyers back into the property market with the launch of a new deferred payment scheme.
A total of 115 properties, typically family homes, are being offered under the scheme which will see Nama protecting buyers from decreases of up to 20% in the value of the property over the next five years.
More than half of the properties are in Cork, with the remainder in Dublin and Meath. If successful, the scheme may be extended to 750 properties nationwide.
EBS, Bank of Ireland, and Permanent TSB have signed up to the initiative, under which purchasers will buy a property with a 10% deposit and approved mortgage, but will only pay interest on 80% of the total mortgage for the first five years.
Nama said the scheme was “a calculated risk” but not for the buyer.
Permanent TSB said it will advance mortgages with a variable rate of 3.69% andwill ensure even if prices do not fall after five years, the customer will not face increased repayments at that time.
Jim O’Keeffe, AIB head of mortgages, said the bank would fully support the pilotinitiative which is available through EBS branches.
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