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Bank targets middle class in Greenspan deal

Individuals in the middle-income bracket will soon have more options for mortgage.

This is after Barclays signed a deal with multiple real estate developers which will see the bank financing deals for the high-in-demand middle class homes.

Among the companies that Barclays has entered into contract with is Greenspan Investments. The bank will provide up to 90 per cent funding to individuals wishing to buy houses under the Greenspan Housing Project in Donholm.

The bank will also offer mortgage services to those interested in houses at the Sunset apartments in Mombasa and the new Sheshe Gardens on Mombasa Road.

Barclays Bank Managing Director Jeremy Awori said interest rates had scared away many prospective home owners, a challenge he said they were hoping to address.

“Even with the relatively low mortgage penetration rates, I believe the sector is seeking solutions to cater for the emerging middle class segment,” said Mr Awori.

According to a recent report by the Mortgage Company (TMC), only one per cent of Kenyans can afford mortgage for a Sh5.7 million house, with another four per cent affording mortgage repayments for a Sh3.9 million house.

TMC report also indicated a revival in both prices and activities in the property sales market with prices for detached and semi-detached houses rising by 1.8 per cent from January to March compared with the fourth quarter of last year. Besides, the apartment prices also rose by 2.3 per cent.