Daft Property - Irish Property News

HOME buyers get mortgage approval from either Bank of Ireland, Permanent TSB or EBS. The buyers then find a property they want that is part of the NAMA scheme. They will need a deposit of at least 10pc of the value of the property. If they are buying a €200,000 house, this means the buyer will need a deposit of €20,000. So the house hunter borrows €180,000 from the bank and repays the mortgage based on this amount for five years. The scheme works by NAMA deferring 20pc of the value of the property, which works out at €40,000 in this case. But for the first five years the homeowner makes payments on the full €180,000 they have borrowed. If, after five years, when the property is revalued under the scheme, the property value has fallen, then the homeowner will end up not having to pay the full amount of the mortgage. This is because NAMA has deferred up to 20pc of the property purchase price. If the property falls in value by 20pc, then the €40,000 will be written off by NAMA. If it fal