Pilot scheme is not the start of a housing bubble, says Nama

Nama has set about rebooting the housing market with an ‘80/20’ offer in which buyers would pay interest on just 80% of the sale price — but it denied seeking to start another property bubble.

Under the terms of the pilot scheme, 115 properties — 62 in Cork, 53 in the greater Dublin area — will go on sale at set prices with the aim of enticing owner-occupiers, and particularly first-time buyers, back into the market.

AIB, via its EBS subsidiary, Bank of Ireland and Permanent TSB are involved in providing mortgages. The scheme will see the buyer proving a 10% deposit and then paying interest on just 80% of the mortgage. The remaining 20% is deferred for five years and carried by Nama.