Ulster Bank’s Momentum Mortgage, designed to get first time buyers onto the property ladder, has attracted another 18 leading Northern Ireland developers.
The mortgage, which was launched last September with the backing of 10 developers, is aimed at getting first time buyers back into the housing market with its no deposit package, and protection against plummeting house prices.
First time buyers don’t need a deposit with the Momentum Mortgage as 5% of the house price is contributed by the developer. In addition, the home loan has up to 15% protection against house price volatility.
Now, with 28 developers on board, an additional 542 new build homes in 21 developments across the province will be made available through the scheme.
Derek Wilson, Ulster Bank head of mortgages, said: “There has been 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.”
He added: “Houses in the first time buyer sector are more realistically priced and interest rates are now at historic lows, so the environment for first time buyers has improved.”
Ulster Bank has committed £100m to lend to first time buyers through the Momentum mortgage in a bid to help hundreds of people into their own home.
Buyers who make a purchase with Momentum Mortgage will have their home independently revalued after five years.
If the value falls by up to 10%, the mortgage is also reduced by 10%.
If, however, the house price goes up by more than 5%, the home-owner has to pay that 5% deposit back.
But, if the property value does not increase by 5%, the developer forgoes the deposit.
One couple who have benefited from the deal are Alan and Rebecca Sherrard who bought a new build four-bedroom detached property in Craigavon last December.
Not having to save for a deposit clinched the deal, according to Mr Sherrard, who said: “It was too good an opportunity to miss.
“The peace of mind of knowing we have protection should house prices fall, along with the added advantage of the developer paying the deposit, meant that we have been able to buy our first home much earlier than we would have ever thought.”
Mr Sherrard added: “With the additional money saved from not paying a deposit, we have been able to purchase all the furniture we need for our new home.”
Full story in Thursday’s Homefinder