If you have already bought an affordable house under a local authority affordable housing scheme, you are not eligible to switch your mortgage from a previous lender (including Local Authorities) to an Ulster Bank Home Run mortgage. Further mortgage advances, equity release or top-ups are not currently available on the Ulster Bank Home Run mortgage. An Ulster Bank Home Run mortgage is not available if you are building your own home on an affordable housing site allocated by your local authority. The maximum mortgage is normally 90% of the property value. An approval in principle is not an offer of a loan.

Lending criteria terms and conditions apply. Security and insurance are required. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Mortgaged property must be in the Republic of Ireland. Applicant must be resident in the Republic of Ireland. The loan amount is not based on one fixed formula. Factors reflecting the repayment capacity of each applicant are individually assessed based on a number of factors including qualifying income, net disposable income and existing commitments. Written quotations are available on request from any Ulster Bank Branch.

Ulster Bank subscribes to the IBF voluntary code of conduct on pre-contractual information for home loans. A copy of this brochure is available in all branches.

The cost per month of a typical €100,000, 20 year flexible variable rate mortgage with a 4.8% APR (Annual Percentage Rate) is €640.77 excluding insurance. Total amount repayable €153,784.80. If rates increase by 1% an additional €55.62 would be payable monthly.

If you redeem a fixed rate mortgage prior to the end of the agreed term, an early redemption charge will be applied. The redemption charge will be a sum equal to the lower of

(i) six months' interest or

(ii) a sum calculated in accordance with the following formula:

(Redeemed Amount) x (R - R1) x Time remaining in days until the end of the fixed rate period) divided by 360.

For the purpose of the above formula:

"Redeemed amount" means the estimated average loan balance between the time of the proposed repayment or interest rate conversion and the end of the relevant fixed rate period, assuming that no such repayment or interest rate conversion takes place and that all scheduled repayments of the loan are made by the borrower under the terms specified in the loan offer.

Where a lump sum repayment is made, "redeemed amount" shall mean the amount of the lump sum repayment.

"R" means the interest rate available to the lender for funds placed in the money market on the start date of the relevant fixed rate period for the duration of the relevant fixed rate period.

"R1" means the interest rate available to the lender for funds placed in the money market on the date of the proposed early repayment, lump sum repayment or interest rate conversion for the remainder of the relevant fixed rate period. The rate applied is based on the remaining fixed rate term of the mortgage, rounded to the nearest month if less than one year or to the nearest year if greater than one year.

"Time" means the number of days from the date of early repayment, lump sum repayment or interest rate conversion to the end of the relevant fixed rate period.

Six months interest is the estimated interest that would be payable in the six months following the proposed repayment or interest rate conversion.

Worked Example

In the example below, a customer took out a 5 year fixed mortgage at a rate of 5.00% on 1st January 2010. On 4th January 2011, the mortgage outstanding was €100,000 and the customer opts to break out of the fixed rate. The breakage cost calculation is:

Redeemed Amount = €87,832.42
R (Market rate on 1st January 2010) = 2.849%
R1 (Market rate on 4th January 2011) = 1.713%
Time = 1,457 days

Breakage Calculation = (Redeemed Amount x (R-R1) x Time) divided by 360
= (€87,832.42 x (2.849% - 1.713%) x 1,457)/360
= €4,038.22

Six Months Interest = €2,500

Therefore, in this case the customer would be charged the lesser amount of the six months interest i.e. €2,500.

When your fixed rate mortgage expires you can revert to the Standard Variable rate or any other mortgage product that you may be offered at this time.