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Bank of Ireland moves to stimulate Northern Ireland housing market

11th June 2009

Bank of Ireland Northern Ireland moved to stimulate the Northern Ireland housing market today by launching a package of developer mortgages in association with 20 local residential property developers across Northern Ireland.

As part of a wider initiative to help the market, the bank also announced it had improved its mortgage products for all home buyers in Northern Ireland.

Through the developer mortgage scheme, Bank of Ireland Northern Ireland will provide mortgages of 90% LTV to potential buyers of the 862 houses across more than 20 sites. It will be available on fully completed and off-plan houses. [See notes for developers and developments.]

Ian Sheppard, Head of Corporate and Property, Bank of Ireland 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 to acquire residential property.

“As a local bank we are now supporting local home buyers by offering mortgages up to 90% of the value of properties at attractive rates of interest. We have a three-year fixed mortgage for 5.75% at 90% LTV and a Base Rate Tracker at bank base rate plus 2.45%. These are competitive mortgages at historically affordable rates which we believe will help contribute to a return of confidence in the market.”

The developer mortgage is open to purchasers of houses at the approved sites. Interest rates will depend on the particular mortgage taken out but, for example, the bank is offering a two-year fixed rate mortgage at 90% LTV at an interest rate of 5.59% and the arrangement fee is £399. The higher lending charge and valuation fee is paid for by Bank of Ireland.

Martin Canning from the McGinnis Group, the developers behind Coopers Mill in Dundonald, stated: "We firmly 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. The launch of the developer mortgages is a real sign that Bank of Ireland is moving to support its customers and to stimulate the property market by providing competitive mortgage products. We are pleased that the bank is responding to the property market and supporting progressive property developers like the McGinnis Group."

The developers and developments included in the scheme announced today are:

McGinnis Group, Wellington Square, Belfast
Alburn Saintfield Ltd / Saintfield Properties Limted, Saintfield Mill, Saintfield
Fordclose Limited, The Riverside, Antrim
Shimna Developments, Shimna Mile, Newcastle
David Patton & Sons (NI) Ltd, Wellington Crescent, Ballymena
SeymourSweeney, Shell Hill, Coleraine
Bryan Orr, Loranville, Larne
Manor/Glencloy, Church Row, Kilrea
Tara Homes Ltd, Castlewalk, Castlerock, Knockbracken, Coleraine and Laurel Hill, Coleraine
Fairview Developments Ballymoney Ltd, Ballymoney, Ballycastle and Coleraine
Brian McCracken Ltd, Londonderry
Anchorage Developers Ltd, Lismore Gardens, Newtownbutler and Aughagay Meadows, Brookborough
McCluskey Bros, Brownlow, Lurgan
Racarbry Developments Ltd, Keady
Dunmore Construction Ltd, Lisniskey Lane & Mews, Portadown
T Morgan Construction Ltd, Dromara and Ballinderry
McGinn Developments, Tamlaght Mews and Highfield, Omagh
Mangan Developments Ltd, The Square, Hillsborough
McGillin Bros Ltd, Killlyvullen, Lisnaskea
MooreAssociates, Killy Neil Road, Dungannon

ends

For further information, please contact:

Julie Sherlock Bank of Ireland +44 (0)28 90433520

Audrey Nolan Bank of Ireland +353 (0)1 6043652

Alan Watson SMARTS +44 (0)7768 798148

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Bank of Ireland moves to stimulate Northern Ireland housing market