13th March, 2008

A new analysis by Northern Bank to mark the first anniversary of its market-leading Base Rate Tracker mortgage suggests that Northern Ireland homeowners could save a collective £41 million a year on their mortgage repayments by switching to Northern Bank.

This equates to a potential saving of £125* a month or £1500 a year per household – money that could be used for a family holiday, home improvements, savings or just to free up some extra cash for everyday bills.

The analysis comes in the same week that the Financial Services Authority (FSA) revealed one in five mortgage holders are worried about meeting their repayments in the next 12 months. The FSA has also launched a major advertising campaign targeted at people concerned about their fixed rate deals coming to an end this year and has published a new guide to help people manage their mortgage in preparation for some difficult times.

Northern Bank’s Base Rate Tracker mortgage links the interest rate that customers pay to their Loan to Value, the amount of the mortgage relative to the value of the home. The lower the Loan to Value, the lower the interest rate on the mortgage. This makes it the most competitive and most innovative mortgage in the Northern Ireland market today.

Responding to the analysis and the FSA’s report, Northern Bank’s Deputy Chief Executive Gerry Mallon believes that switching to this mortgage could reverse the impact of increased inflation on monthly bills and provide an affordable mortgage option for those home owners whose fixed rate deals are coming to an end.

Mr Mallon explained: “One year on, our Loan to Value mortgage continues to provide one of the most competitive lifetime Base Rate Tracker products available in the market today, which is why we don’t need to rely on gimmicks to encourage people to switch to us. With signs of weakening consumer confidence and pressure on family finances, there’s never been a better time for home owners to speak to one of our Mortgage Advisers to find out how much they could reduce their monthly mortgage payment by.”

Every three years, customers have the opportunity to review the rate of interest they pay, allowing them to benefit from any reduction in their Loan to Value.

To make the process of switching mortgage easier and even more cost effective, customers switching to a Northern Bank from another lender will be entitled to a Switchers’ Incentive Package including up to £300 towards legal fees and up to £175 towards valuation fees. First Time Buyers will be offered up to £175 towards a standard valuation and up to £200 towards legal fees**.

All Northern Bank mortgages are available to both new and existing customers.

ENDS

• * Calculations based on a property value of £230,000 with a mortgage of £110,000 (Loan to Value 48%), 20 year term remaining. Average competitor Standard Variable Rate (SVR) of 7.59% (Abbey 7.59%, A&L 7.69%, FT 7.65%, Ulster 7.42%). Source Moneyfacts 25 February 2008.