First Time Buyers Momentum mortgage - How it works
Our Momentum mortgage makes it easier to get onto the property ladder.
How it works
- Choose your mortgage for 95% of the property value
- The developer pays the 5% deposit
- In 5 years we will revalue the property
If the value of your property has increased by 5% or more you are required to pay back the original deposit to the developer through personal savings, personal loan or by topping up your Ulster Bank mortgage.
If the value of your property has decreased:
You don't pay back the deposit and we'll reduce your mortgage by up to 10% of the original property value.
Example of our Momentum mortgage working
| Year 1 | |
|---|---|
| House price | £150,000 |
| Professional valuation | £150,000 |
| Mortgage provided by Ulster Bank at 95% of property value | £142,500 |
| 5% deposit paid by the developer | £7,500 |
| Year 5 | |||
|---|---|---|---|
| If after 5 years: | |||
| Professional valuation | New valuation is at least 5% higher than original valuation | New valuation is lower than original valuation | New valuation is the same as original valuation |
| Mortgage amount | £142,500 | £142,500 | £142,500 |
| New professional valuation | £160,000 | £140,000 | £150,000 |
| Loan to Value | 89% | 102% | 95% |
| Pay Deposit back £7,500 | Yes | No | No |
| Mortgage reduced | No | Yes | No |
| Guaranteed reduction (up to 10% of original property value) | No | £9,500 | No |
| Revised mortgage | No change | £133,000 | No change |
| Revised Loan to Value | No change | 95% | No change |
