First time buyers can take advantage of a new Ulster bank mortgage scheme from next week in which no deposit is required when purchasing a property.

The new initiative will allow first time homebuyers access to the market without the need to fund a deposit and includes added protection against hose price volatility.

The scheme - which is being rolled out in conjunction with a number of leading residential property developers across Northern Ireland - will be available to first time buyers from early September.

Ulster Bank Head of Mortgages, Derek Wilson, said the initiative is designed to support first time buyers in current difficult housing market conditions.

'First time buyer levels remain low in Northern Ireland, despite asking prices for properties having been reduced significantly in many areas during recent months' he said.

'This product has been specially designed to provide first time buyers with additional protection against house price volatility and to allow them to purchase without having to fun a deposit themselves - two of the main deterrents for first time buyers.'

'A steady supply of first time buyers entering the housing market is vitally important, therefore by supporting first time buyers, this product offers resulting benefits to the market as a whole.'

A key feature of the new mortgage product includes a 5% deposit on the property contributed by the developer, repayable by the buyer only in the event of the property price rising by 5% or more after five years.

The buyer will also be safeguarded up to an additional 10% against any fall in property value over that five year period.

Source : Newry Democrat