NAMA have announced a scheme called a deferred mortgage scheme – which aims to encourage people to buy property whilst protecting them against future price drops.
Under the NAMA scheme – 80% of the agreed sale price will be paid upfront and the remaining 20% will be paid after five years if the property does not fall in value.
If the value of the property in five years time has fallen below the value of the property at the completion date, the deferred amount (i.e. 20%) will be reduced or cancelled depending on the level of reduction. For example – a 15% fall in value would reduce the deferred amount payable to 5%.
If the house value has dropped by 20% or more , the deferred amount is no longer become payable to NAMA and the buyer will have no liability for the payment of this amount to the lender.
How will this work : In the example of a buyer getting a 90% mortgage …. for the first five years, the monthly mortgage payment will be calculated as follows: the paydown of capital will be on the basis of the full 90% mortgage (the combined first and second instalments) but interest will only be charged only on 70% of the principal, that is, the amount drawn. Interest will not be charged on the amount of the second instalment until it has been drawn down in the fifth year.
Initially a small amount of homes are available to buy under the NAMA scheme (about 115 ) . After the pilot scheme there could be over 600 additional properties included.
The deferred mortgage initiative is available to first-time buyers and existing home owners purchasing an eligible property as their principal primary residence and obtaining mortgage finance from an eligible participating mortgage provider.
Mortgages can be obtained from Bank of Ireland, EBS and Permanent TSB
This is a list of the estates with houses for sale eligible for the NAMA deferred mortgage scheme. (Not all houses on these estates are in the scheme) Contact details for the estate agents are shown.
Devlin Banks, Naul Village, Co Dublin : O’Farrell Cleere Auctioneers 01-8453377
Carrickmines Manor, Glenamuck Road, Dublin 18 : DNG 01-4912600
Brown’s Barn Wood, Naas Road, Dublin : Durkan Residential 01-2310190
Loughmore Square, Killeen Castle Dunshaughlin, : Sherry Fitzgerald 01-6671888
Ardfield, Grange, Douglas, Co Cork : – Savills 021 4906117
Cul Ard, Carrigtwohill, Co Cork : Ahern Auctioneers 021-4634022
Inis Alainn, Carrignafoy, Cobh, Co Cork : English Auctioneers 086 2436916
Rowen Hill, Mount Oval, Rochestown, Cork : Sherry Fitzgerald 021 4273041
Brightwater, Crosshaven, Co Cork : Sherry Fitzgerald 021 4273041
Old Quarter, Ballincollig, Co Cork : Sherry Fitzgerald 021 4273041
Highfield Park, Ballincollig, Co Cork : Burton & Associates 021 4274333
Drakes Point, Crosshaven, Co Cork : Sherry Fitzgerald 021 4273041
NAMA say that the properties are primarily included on the basis of location and type relative to current market demand. The pilot phase includes a mix of 2, 3 and 4 bedroom houses that are located in Leinster and Munster. The properties included are limited to those being sold by NAMA borrowers. NAMA does not own the properties.