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Bank launches package of developer mortgages

Published on: Monday 15th June 2009

Bank of Ireland has launched a new package of developer mortgages with 20 local residential property firms, a move the bank says will help stimulate the Northern Ireland housing market.

The developer mortgage is open to purchasers of houses at approved sites operated by the developers, the bank said yesterday.

Interest rates will depend on the particular mortgage taken out but the bank said it is offering a two-year fixed rate mortgage at 90% loan to value at an interest rate of 5.59% with an arrangement fee of £399, a three-year fixed mortgage for 5.75% and a base rate tracker at bank base rate plus 2.45%.

Ian Sheppard, head of corporate and property for Bank of Ireland in Northern Ireland, said: "Housing in Northern Ireland is increasingly affordable as prices fall from their peak. We are delighted to be working hand in hand with these local developers to assist potential homebuyers acquire residential property. These are competitive mortgages at historically affordable rates which we believe will help contribute to a return of confidence in the market."

Martin Canning from the McGinnis Group, the developers behind Coopers Mill in Dundonald, added: "We believe that prices for new build property in Northern Ireland have levelled off and now represent excellent value for home buyers. Financial institutions such as Bank of Ireland also recognise this and are increasing the availability of suitable mortgage products.

"We are pleased that the bank is responding to the property market and supporting property developers like McGinnis Group."

The developers and developments taking part in the scheme include: McGinnis Group's Wellington Square in Belfast; Saintfield Properties' Saintfield Mill; Fordclose's The Riverside in Antrim; Shimna Developments' Shimna Mile in Newcastle; and Pattons' Wellington Crescent in Ballymena. Also involved are: Seymour Sweeney with Shell Hill in Coleraine; Bryan Orr's Loranville in Larne; Glencloy development Church Row in Kilrea; Tara Homes' Castlewalk developments in Coleraine; Fairview Developments in Ballymoney, Ballycastle and Coleraine and Brian McCracken developments in Londonderry.