Developers to pay your mortgage if you sign up now

A developer of a north Dublin residential scheme is offering free mortgages for six months to first-time buyers.

The move is good news for first-time buyers who can expect to see incentives from other property developers keen to boost sales in a slower market.

Twinlite Developments is offering to pay purchasers' mortgages at its Cruise Park scheme in Tyrrelstown, Dublin 15, from the date that they close the purchase, for a limited period.

In addition, on-site mortgage brokers at the scheme will pay the bank valuation costs and mortgage protection cover for a full year, for all mortgages arranged through them.

Meanwhile, over in Dublin 13, Gannon Homes is offering free kitchen appliances, timber floors, carpets and landscaped gardens at its Clongriffen scheme in a bid to get buyers to sign on the dotted line.

These new incentives are a clear sign that developers, who became used to selling in large volumes, are now readjusting to a more realistic and competitive market and are now fighting for their share of first-time buyers.

Reluctant to trim back prices, they are opting to offer first-time buyers attractive extras to get them to sign contracts.

Twinlite is the first off the blocks to offer a more inventive incentive, but it is likely that other firms will follow.

Affordability is a key issue for people facing interest rate increases, according to Ronan O'Driscoll, new homes director at Savills Hamilton Osborne King.

"Buyer incentives such as these address this issue and can be an excellent sales idea," he says.

Rick Larkin, director at Twinlite Developments, conceded that his company is "not doing this on a purely philanthropic basis". It is a promotion and he believes that it will give them an edge in a more realistic market, he said.

As competition increases and supply meets demand, the industry is going to have to change tack, according to Larkin.

The days of "churning out semi-ds are going" and the industry is going to have to act accordingly, he says.