Free mortgage until 2010?

By John Hill on October 6, 2008 11:59 AM |

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THE credit crunch is forcing housebuilders to do more and more to entice buyers.

The market has become so tough that major housebuilder Barratt Homes is offering to pay buyers’ mortgages until 2010 if they agree to purchase an apartment at one its Maple Quays or Elektron developments.

Adam Lawrence, regional managing director of Barratt London and Thames Gateway said: “Our customers have told us that they are worried about getting a mortgage and the wider economic picture."

“That is why we’re offering to pay their mortgage for them until 2010 – by which time everyone hopes the economy will be back on its feet.”

The Maple Quays apartments were launched at Smollensky’s, in Canary Wharf, last Wednesday, and four apartments were sold on that day.

But sluggish market conditions have led Barratt to pump cash into trying to market the remainder.

The company has planning consent for 42 apartments in Maple Quays, which is close to Canada Water Tube, and the firm is in the process of applying for permission to build a further 179 close by.

But buyers are hesitant about investing in property at such an uncertain time.

The Elektron, which has a pedestrian link to East India Dock DLR, is all but sold out with 90 per cent of its apartments having been snapped up.

But with 36 left, Barratt has decided to make the same offer on mortgages to try and shift the last flats.

Bob Barlow, press officer for Barratt East London said: “We are the same as any other business in this climate.
“We are cutting out coat according to our cloth.”