What Do We Think Now Of NAMA Deferred Mortgage Scheme?

In the rush to be first with a story online, some websites fail to provide the full picture of what is happening.

A month has passed, so what do we really think of NAMA’s deferred mortgage scheme?

To recap, last month NAMA announced a pilot scheme involving 115 houses and apartments for a deferred payment of the final 20 per cent.

The scheme has been set up to sell some of the properties by NAMA using an 80/20 scheme. It is designed to get people to purchase who are unsure if the market has reached bottom, and this protects the buyer from further falls. At time of writing in early June, the bottom may still be some way off yet.

This scheme will operate where the buyer is eligible for the full credit price and can get a mortgage of 90 per cent of the value, from a recognised mortgage lender.

The buyer pays 80 per cent of the price to NAMA and then in five years time the value of the property will be independently assessed and if the price has not decreased then the remaining 20 per cent will be paid.

This guarantees the purchaser against falling prices, and gets some movement in the housing market.

Let us know what you think by leaving a comment below.

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