NAMA's "80/20" mortgage scheme set to close
NAMA is to close its “80/20” mortgage scheme which was designed to protect buyers of houses from the agency from future house price declines.
So far 112 houses have been sold to buyers who opted to use the scheme.
“The fact that buyers are no longer actively seeking protection from price falls is a welcome sign that the housing market is stabilising and returning to more sustainable, normalised conditions,” the agency said in a statement.
The National Asset Management Agency (NAMA) said that the so called deferred mortgage scheme will be closed to new buyers from the end of May this year.
Purchasers who have already bought a house using the scheme, or buy between now and the deadline, will not be affected
NAMA launched the scheme in 2012 in order to help shift its stock of new houses at a time when buyers were wary of further house price falls.
The deferred mortgages were structured so that home buyers would take out a mortgage with a participating bank as normal, but with an agreement from NAMA as the seller of the house that as much as 20pc of the loan could be written off – if house prices drop over the five years after the sale closes.
The scheme will have run for two years once it is withdrawn in May.
House prices fell in 2012, the first year of the scheme, before stabilising nationally last year.