New Governement scheme will help first-time buyers get on the property ladder whilst kick-starting house building
Published 23/05/2014 | 02:30
The Government is planning to make it easier for first-time buyers to get a mortgage in an effort to kick-start house building.
"To allow banks to give out more loans, the State will guarantee a portion of the mortgages to first-time buyers of new houses.
The sharing of the risk will be undertaken through a Government mortgage insurance scheme paid for by the banks.
The scheme will allow the first-time buyers to buy their houses with smaller deposits, by giving out mortgages worth up to 95pc of the value of the home.
The lower level of risk to the bank will also potentially lower their mortgage repayments.
The increased level of mortgage funding is expected to provide certainty to the construction industry to build more homes."
First published in INSIDER Magazine, exclusive to Thursday's Irish Independent