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Tuesday 16 September 2014

Bank of Ireland to pay stamp duty for first-time buyers

Experts say move has echoes of boom time lending and incentives

Published 02/04/2014 | 10:20

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A pedestrian passes a Bank of Ireland branch at dusk in Dublin, Ireland, on Thursday, Dec. 12, 2013. Ireland is set to exit a 67.5 billion-euro ($92.4 billion) three-year bailout on Dec. 15 with more than 20 billion euros of reserves that can fund the exchequer into 2015. Photographer: Aidan Crawley/Bloomberg
Bank of Ireland has said it is 'normalising' its relationship with the State

BANK of Ireland is to pay the stamp duty on property purchases for first-time buyers.

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The move has echoes of the boom when loose lending and incentives meant people overpaid for homes, experts said.

The bank said it will refund stamp duty to new buyers, equivalent to 1pc of their mortgage amount for drawdowns up to the end of September this year.

This would mean a refund of €2,000 on a €200,000 mortgage.

This means it is one of the most attractive incentives in the market at the moment.

Other lenders are prepared to pay the home insurance of new buyers for the first year, a figures unlikely to be more than €300.

The bank said it has provided more than €2bn in mortgage approvals under its first-time buyer and mover fund launched in October 2012 and has an additional €2 billion fund available to meet current and anticipated demand.

Aine McCleary, Bank of Ireland’s Head of Mortgages RoI said: “Bank of Ireland is very keen to support first-time buyers who are looking to purchase their first home.”

It said it was see demand for mortgages from all parts of the country, particularly now as property prices have stabilised outside Dublin.”

However, Karl Deeter of Irish Mortgage Brokers said: “That a bank is willing to pay a persons stamp duty has the hallmarks of the kind of thing we used to see in the run up to the boom.

“Clawing back lost market share in this manner would be better served by giving people greater choice as opposed to paying them off.”

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