Scheme releases over 500 no-deposit homes to new buyers in North

Over 500 more no deposit homes are being made available to first-time buyers in the North with protection against price falls, it was announced today.

A further 18 leading local residential property developers have signed up to Ulster Bank’s Momentum Mortgage scheme.

As a result 542 new build homes in 21 developments right across the North are available through the scheme.

The bank first launched the mortgage in September with 10 leading developers to try to get the property market moving and recently made £100m (€110.5m) available to fund the mortgages.

A first time buyer interested in purchasing a home from one of the developers can apply for a 95% mortgage from the Ulster Bank with the developer funding the 5% deposit.

The property is independently valued and after five years is re-valued to assess whether it has gone up or down. If the value is down by up to 10%, the mortgage will be reduced by up to 10%.

If the property price rises by 5% or more, the customer will be required to pay the developer back the 5% deposit he put down in their behalf. If the property value down not increase by 5% the developer forgoes the deposit.

Derek Wilson of Ulster Bank said: “There has been very significant interest in Momentum and following the success of the first phase we are making it more widely available , with plans to extend it even further during the course of 2009.”

Houses in the first time buyer sector are more realistically priced and interests were now at historically low levels meaning the environment for a first time buy had improved, he said.

“Momentum addresses some of the challenges that first time buyers are facing, including the need to save for a deposit and the fear of house values declining.

“”We have committed £100m (€110.5m) to lend to first time buyers through our Momentum mortgage and are confident that it will continue to support hundreds of first time buyers onto the property ladder who would be otherwise unable to buy their first home.“