Ulster Bank launch new mortgage to help first-time buyers

Last night it was revealed that Ulster bank has joined forces with a number of property developers to launch a new mortgage available next month aimed at first time buyers.

Generally first time buyers have to put down at least 5 percent deposit on their first house purchase but with this new mortgage a key feature is that the developer pays for the 5 percent deposit and the buyer only repays the developer if the price of the property rises 5 percent or more after five years of having the loan.

What’s also great about this mortgage is that it also protects the buyer for up to an additional 10 percent against any fall in house value over the period of five years from when they purchase the property. So if the property price falls, not only does the purchaser not have to pay back the 5 percent but the banks will also reduce the mortgage by a maximum of 10 percent of the original purchase price, therefore to maintain the 95 percent loan-to-value ratio.

This innovative mortgage is aimed at first time buyers struggling to get on to the property ladder, and to protect them within this volatile market, plus of course they do not need to fund the deposit themselves.

Julie Megrath, head of Money Affairs at the Consumer Council has welcomes the response from Ulster Bank and encourages more banks to come up with innovative solutions to ease the burden that many consumers are facing.

Source: Belfasttelegraph