Northern Bank Mortgage

atuk

Would you like to take advantage of the equity you have built up in your home and pay less each month for your mortgage?
If so let us introduce you to our Base Rate Tracker, which is a Loan to Value Mortgage. With this mortgage you can use the equity in your home to significantly reduce your mortgage repayments!

Our unique Base Rate Tracker mortgage links the interest rate that you pay to your Loan to Value. The Loan to Value (LTV) is the amount of your mortgage relative to the value of your home. Its simple : the lower the Loan to Value, the lower your interest rate

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hello..Is this the same as releasing the equity of your home? Does it mean that if I have a 90K mortgage and my house now is valued at 100k, i can use the 10k difference into my mortgage thus knocking off my mortgage to 80k.
thanks!

maninthestreet

No - it means you pay less interest the lower your LTV is -

"Its simple : the lower the Loan to Value, the lower your interest rate"

homer_j_3

If you owe 90k based on 100k mortgage, you will get the rate applicable for a 90% ltv.

The product is priced to be cheaper if you have more equity in your property. You cannot borrow the equity to reduce your mortgage as you are removing that equity by borrowing against it.

atuk

thank you maninthestreet and homer_j for a very very helpful explanation.

minimike2

Its just fancy wording to try and make it sound like something it isnt. The truth is that most lenders offer cheaper pricing for lower LTV products.

maveli

I had a look at this earlier but decided not to take in favour of HSBC's life tracker. The cheapest northern bank offer is 0.35 (was 0.25 last month) above their base rate. that's even if you got 50% LTV There are better ones out there compared to this.