Momentum Mortgage - How it works
Our Momentum mortgage, which is available on certain properties in participating developments, 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, a 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 depending on your new valuation.
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 |
