Property developer Barrack Homes is offering to subsidise mortgage repayments for first-time buyers investing in its Kildare housing developments. Caroline Maddenreports.

Under its new "FixedPlan" scheme, Barrack Homes will cover the cost of customers' fixed-rate mortgage repayments over and above the European Central Bank (ECB) rate - which is currently 4 per cent - for a three-year period.

However, the mortgage repayments over the three years are interest-only, which means that the entire capital amount remains outstanding at the end of the introductory period.

And depending on the ECB rate prevailing at the end of the three years, customers that sign up to this offer could find themselves facing an abrupt jump in monthly repayments, as they will no longer be subsidised by Barrack Homes, and will be repaying capital as well as interest. Barrack Homes did not respond to queries from The Irish Times on this issue yesterday. The offer applies to all Barrack Homes developments in Newbridge, Kilcock and Ballitore.

"It is, in our view, the most beneficial home purchase product introduced in Ireland, particularly for first-time buyers who already face so many obstacles when trying to get on to the property ladder," said Barrack marketing director Mike Keely in a statement issued by the company.

"It provides them with the advantage of knowing their exact financial monthly repayments for three years."

It also launched a cash rebate scheme recently, offering a refund from €3,000-€20,000 to purchasers of properties in any of its developments. It has also designed a new "exchange bond" financial product, which it says relieves property buyers from having to make a cash deposit.