80/20 Deferred Payment Initiative
NAMA launched its DPI in May 2012. The initiative aims to provide home buyers with a level of protection against a fall in residential property prices over the initial five years of a mortgage. The initiative was launched in conjunction with Bank of Ireland, EBS and Permanent TSB and covers over 400 residential properties under the control of NAMA debtors or receivers. Under the initiative, the home buyer pays 80% of the property’s value upfront, with the remaining amount (up to 20% of the property’s value) to be paid in five years by the mortgage provider (on behalf of the home buyer) directly to NAMA depending on the value of the property at that time.
The residential properties included in the initiative have been released on a phased basis, with the most recent launch occurring in March 2013. The properties, predominantly three and four bedroom semi-detached houses, vary in price range from €95,000 to €410,000 and are located in 13 counties across Ireland. To date, sales have been achieved on over 50% of the available units.