The Momentum Mortgage scheme, originally released in September 2008 has attracted another 18 local property developers.  The scheme now boasts 28 developers with an additional 542 new build homes available in 21 developments.  

The Scheme was developed to encourage first time buyers back into the property market by cutting out the need for a saved deposit.  Purchasers are also protected against further price fluctuations of up to 15%.  Mr Derek Wilson, Head of Products at the Ulster Bank said that there has been significant interest in the scheme since in started in September of last year.

Derek confirmed “We have committed £100m to lend to first time buyers through our Momentum mortgage and are confident that it will continue to support hundreds of first time buyers onto the property ladder who would be otherwise unable to buy their first home.”

Purchasers will automatically have their home independently revalued after five years.  If the value falls by up to 10%, the mortgage is reduced by the same percentage.  If however the value rises by more than 5%, a 5% deposit will become payable to the Ulster Bank.  If the value does not rise by the 5%, the developer waives any right to a deposit.

The scheme has proved very popular and it is hoped that others will follow with similarly innovative products to encourage lending activity.