Northern Bank Flexible Mortgages | Are They Really That Flexible

Northern Bank Logo Northern Bank offers a range of home loans, many of which have flexible features. Borrowers can choose to repay capital and interest or interest only and can choose from fixed, variable and tracker interest rates. Northern Bank lends up to 90 per cent of the value of the house (which is not always the same as the sale price) to home movers or mortgage switchers. First time buyers can borrow up to 95 per cent of the property value.

Northern Bank flexible mortgages offer great flexibility with payments, with borrowers able to choose a payment interval that suits them. Borrowers can also choose to increase monthly repayments at any time to reduce the amount that they owe. Northern Bank also allows customers to reduce payments (for example at Christmas), subject to an agreed minimum payment, but warns that will increase the amount of interest owed.

With Northern Bank flexible mortgages, borrowers can also choose to have their repayments stay at the same level throughout the year and increase them by a set amount every year so that more of the mortgage loan is repaid. Additionally, borrowers can also choose to pay in occasional lump sums to reduce the amount owed on their Northern Bank flexible mortgage. This is a useful option for homeowners who earn commission or receive bonuses.

Fixed rate home loans are available to new and existing customers, and overpayments are permitted after the end of the fixed rate period. Any overpayments made prior to this will normally incur an early repayment charge. With Northern Bank's variable rate loans there are no restrictions on making lump sum or regular overpayments and there are normally no early repayment charges. Interest is calculated daily. This is also the case for the bank's base rate tracker loans. Northern Bank also offers fixed and variable rate investment housing loans for people who may be looking to purchase a second property. These loans are not intended for commercial developers.

Northern Bank Flexible Mortgage Deals

Northern Bank's house mortgage base rate is 1.3 per cent above the current Bank of England base rate of 4.75 per cent. Its standard variable rate is a further 0.75 per cent above its house mortgage base rate. The bank offers a number of flexible mortgage deals.

There are several discounted variable deals available, at discounts of between 0.5 per cent and 1.1 per cent on the standard variable rate, depending on the loan amount. The annual percentage rates (APRs) are between 5.9 per cent and 6.7 per cent. There is an arrangement fee of £299 and there are no early repayment charges on loans agreed after 18 April 2006.

Northern Bank also offers its Repay variable rate mortgage, at APRs of between 5.7 and 6.4 per cent. Arrangement fees are £299. Northern Bank's base rate tracker mortgages are available at discounts to the base rate of 0.39 per cent or 1.24 per cent, depending on the amount to be borrowed. APRs are between 5.4 and 7.1 per cent, with arrangement fees of £299 and no early repayment charges on loans agreed after 18 April 2006.

Finally, Northern Bank also offers fixed rate deals till 2009 or 2011, then reverting to the standard variable rate. The APRs are between 6.5 per cent and 6.7 per cent. There are arrangement fees of £299, booking fees of £200 and early repayment charges apply during the fixed rate period*.

However, please note that The Offset Mortgage Centre cannot advise on or arrange mortgages from the Northern Bank.

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Pro's

Available in Northern Ireland

Con's

Limited flexibility

Features

Interest charged daily on positive current account balances

Offset Mortgage Centre

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