Wednesday 16 April 2014

Four in 10 NAMA home buyers reject negative equity scheme

HOUSE hunters have failed to embrace a NAMA scheme designed to protect buyers from falling prices.

Four out of 10 buyers of NAMA homes are not taking up the offer of free insurance against negative equity, Finance Minister Michael Noonan told the Dail.

Instead, they are buying homes from NAMA with cash. Cash buyers do not qualify for the scheme, where up to 20pc of the purchase price of the property will not have to be paid, if the property falls in value over five years.

NAMA calls the scheme the 80:20 deferred payment initiative. Mr Noonan told Sinn Fein's Pearse Doherty that 60pc of buyers of NAMA homes that are part of the scheme had taken out a mortgage.

But the rest were cash buyers, who would not qualify for the price fall guarantee.

Irish Independent

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