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'Substantial' interest in Govt-backed mortgage scheme

'Substantial' interest in Govt-backed mortgage scheme

There has been a surge in interest for the new Government-backed mortgage scheme.

Daft.ie say there was a 9% rise in searches for properties that qualify for the scheme last week.

Under the plans, some first-time buyers can get a mortgage from local authorities for properties up to €320,000 in the greater Dublin area, Cork or Galway.

The cap in Waterford and the rest of the country is €250,000.

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Martin Clancy from Daft.ie says the scheme has captured people's attention.

He said: "What it has certainly done is it has lifted a response from property hunters, because the week directly after the minister made his announcement, there was a 9% increase which is quite substantial.

"When you see things like this emerge, you definitely see that Irish people have responded, and people are searching for properties that fall within those two price brackets now than they were before the minister made the announcement."

But NUI Galway housing expert Dr Padraic Kenna says there's a big difference between the numbers expressing interest and the numbers who'll be able to buy a home:

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"These are asking prices, the ultimate price is subject to negotiation and the ultimate price is really going to be what mortgage credit people can access, so there's a lot of bigger factors there."

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