MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • NAMA launch their 80:20 Deferred Payment Initiative
Uncategorized
May 8, 2012 - 12:01

NAMA launch their 80:20 Deferred Payment Initiative

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
NAMA launch their 80:20 Deferred Payment Initiative

The National Asset Management Agency (NAMA) has today launched its residential mortgage 80:20 Deferred Payment Initiative on a pilot basis.
The initiative is one of a range of measures planned by the agency to facilitate first time buyers and other owner occupiers who wish to purchase a home and encourage activity in the housing market. The pilot phase will see the initiative available on more than 115 houses located in 12 developments in Dublin, Meath, and Cork. The available properties include Delvin Banks in the Naul in Co Dublin, Old Quarter in Ballincollig in Cork and Loughmore Square in Dunshaughlin, Co Meath.
There are a range of house types available suitable for first time buyers and owner occupiers and NAMA insists the initiative may be rolled out to further properties in due course.
The key features behind the new initiative include:

  • NAMA does not own the properties and is not itself issuing the mortgages.
  • This is a targeted initiative aimed solely at potential home buyers who may have a concern that house prices may fall further and are consequently postponing their purchase.
  • It offers potential buyers the ability to own and move into a new home now instead of renting while they wait for the market to stabilise.
  • The product will protect buyers from decreases of up to 20% in the value of their property over the next five years.
  • Three banks – Bank of Ireland, AIB (through their subsidiary EBS) and Permanent TSB bank – will participate in the pilot initiative. Buyers should approach these banks to obtain a mortgage, which will be subject to typical lending criteria.
  • 80% of the agreed sale price of the property will be paid over upfront. The remaining 20% will only be due in five years’ time. How much, if any, of that 20% is then due will be calculated on the basis of an independent assessment of the property’s value at that point.
  • As normal, each of the three lenders will require buyers to part-fund their purchase with a deposit of at least 10% of the value of the house.
  • A key benefit for buyers is that, for the first five years, their repayments can be calculated based on a mortgage that includes the deferred payment element. If the price of their house falls over the five years and they may not be liable for the deferred payment element, they will have, in effect, been accelerating their mortgage repayment and achieving considerable savings on the interest accruing on their mortgage.
  • This is a targeted, limited pilot initiative supported by NAMA.
  • The initiative is not aimed at buyers who cannot get a mortgage or at investors.


Speaking at the launch of the Deferred Payment Initiative, Brendan McDonagh, NAMA Chief Executive, said: “Based on market research which we have carried out, concern about potential decreases in house prices in the future is a significant factor for house buyers in the current market.
"We are piloting this initiative to allow some buyers, who are putting off their purchase in the expectation that prices may fall further, to buy now with the knowledge that they may not lose out even if the value of their home falls by up to 20% over the next five years.
"Together with initiatives introduced in the recent budget, we believe that this measure will help encourage greater activity in the housing market.”
Mr McDonagh said the initiative aimed to generate more activity in the Irish housing market and facilitate greater price discovery. Selling homes that are currently unoccupied will save money in maintenance costs and will also help to increase occupancy in developments that are currently partially-occupied, he said.
A listing of the properties that are eligible for the initiative can be viewed on www.nama.ie
Advertisement

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • 80:20 Deferred Payment Initiative
  • AIB
  • Bank of Ireland
  • Brendan McDonagh
  • Budget
  • chief executive
  • Cork
  • deferred payment
  • deposit
  • Dublin
  • EBS
  • first-time buyers
  • housing market
  • independent assessment
  • initiative
  • interest
  • investors
  • lending criteria
  • Meath
  • NAMA
  • National Asset Management Agency
  • owner occupiers
  • Permanent TSB
  • pilot basis
  • price discovery
  • residential mortgage
  • savings
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement