herald

Wednesday 22 November 2017

Homes

NAMA to launch its mortgage plan

NAMA's controversial mortgage project may be piloted as early as April.

Homeowners who decide to buy properties held by NAMA would not have to repay the full cost of the mortgage if property prices drop further.

The scheme was scheduled to come into effect by the end of 2011.

But it has been plagued with delays as the toxic bank negotiates financial and legal details with banks and lawyers.

There will be a soft launch of the plan on to the market with as few as 200 residential properties.

NAMA wants to gauge the public's reaction to the scheme before rolling out more of its 2,000 houses.

It's also hoped that the plan will include mortgages for apartments -- which make up the majority of the agency's property portfolio.

While NAMA is not planning to lend mortgages directly to home buyers, the new 'NAMA mortgages' are designed to encourage nervous buyers to take the first step by partially protecting them against the risk of negative equity.

NAMA said the product can protect borrowers from serious losses by cancelling up to 20pc of the size of their mortgage. NAMA currently controls around 8,000 residential properties.

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