Despite the fact that the Property Price Register seems to show muted results for the NAMA deferred mortgage product launched on 8th May, 2012, NAMA insists that the pilot scheme has been a success, and the Agency has today announced it is extending the scheme to an additional 180 homes in 12 counties – remember the pilot scheme announced in May 2012 only applied to 115 properties in three counties.
The NAMA scheme which NAMA calls a “deferred payment initiative” involves buyers getting a normal mortgage from one of NAMA’s designated banks – AIB/EBS, Bank of Ireland and PTSB. After five years, the value of the property will be assessed and NAMA will knock any decline in value, up to 20%, off the original purchase price. The scheme was designed to give reassurance to buyers that if prices continued to fall, then NAMA would bear the risk up to 20% over five years.
NAMA has said that it eventually hopes to extend the scheme to a total of 750 homes. The extension of the scheme announced today applies to the following properties: