A metaphorical 'tightly-bolted door' that is keeping many first-time house buyers out of the market, could be about to be unlocked, through a new bank-led initiative.

Ulster Bank has joined forces with property developers from across Northern Ireland to support hard-pressed first-time buyers onto the property ladder.

The new initiative will allow homebuyers access to the local housing market without the need to fund a deposit, and with added protection against house price volatility by up to 15%.

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

A key feature of the new mortgage product is 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.

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

Ulster Bank Head of Mortgages, Derek Wilson, said that the initiative is a major innovation, designed to support first time buyers in current 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.

"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 fund 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," Mr Wilson added.

The news is set to be welcomed by thousands of potential first time buyers across the Province, who have seen prices drop, but are at the same time faced with the availability of affordable mortgage offers withering.

The reduction in 100% mortgage deals has meant many buyers have needed to seek out extra finances to stump-up huge deposits.

(PR)