Two of Ireland's leading property companies are offering homebuyers interest-free loans in an attempt to stimulate activity in the housing market.
Glenkerrin Homes and Radora will announce details today of the schemes to assist would-be buyers at key Dublin locations, including Stillorgan, Elm Park, Ballinteer and Palmerstown.
According to a statement, Glenkerrin is stepping in to help out those no longer able to secure loans of up to 95%.
Potential buyers of its properties in Stillorgan, Ballinteer and Lucan will have to pay 5% of the asking price. They can then avail of an interest-free loan of 15% of the price to be repaid in seven years.
Speaking on Morning Ireland, developer Ray Grehan of Glenkerrin Homes disagreed that, by offering buyers a loan for their house deposits, the company was facilitating bad financial practice.
Builders step in where lenders fear to tread; a lack of money and a lack of confidence – that is how Mr Grehan assessed the problems in the housing market.
Fellow developer Bernard McNamara's apartment development in Elm Park in Dublin 4 has already seen prices fall 20% to attract buyers.
Radora is now offering interest free loans of up to 30% of the selling price to be paid back within five years.