YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most of our residential mortgages have several repayment options. You can choose from:
Capital & Interest Repayment
This is where your repayments cover both capital and interest, which means that your loan will be fully repaid at the end of the term.
Low Start Option
An additional feature on our Capital & Interest Repayment mortgage is a Low Start Option. You can opt to make interest only repayments for up to the first five years of your mortgage, which can help to lower your repayments in the early years. After this time, you will repay both Capital & Interest, ensuring your loan is fully repaid by the end of the term.
To avail of the Low Start Option:
- Your Loan to Value must not be greater than 95% (based on the lower of the purchase price or valuation)
- Your salary must be paid into a Northern Bank Current Account
- You must be able to demonstrate that you will be able to afford your mortgage repayments when the low start period ends
The Low Start Option is not available on Northern Re:pay accounts.
Please note that with the Low Start Option, the amount of capital will not reduce during the interest only period, so you could end up paying more in interest charges.
Details of fees and interest rates that may apply to Northern Bank Personal Current Accounts are available in all Northern Bank branches and online by clicking on - Fees & service charges explained (PDF 97 KB) or Interest rates (PDF 91 KB).
Interest Only
This is where your repayments only cover the interest on the loan which means you will still owe us the amount you borrowed at the end of the term. You will have to make alternative arrangements to repay the capital. For residential mortgages we can only give you an interest only mortgage if you have a suitable repayment vehicle in place to repay the capital at the end of the term. You should seek independent investment advice regarding a suitable repayment vehicle.
The Interest Only option is not available on Northern Re:pay accounts.
Please note that with an Interest Only option, the amount of capital will not be reducing, so you could end up paying more in interest charges.
