Ulster Bank Launches Northern Irelands's First 40 Year Mortgage for First Time Buyers

26th Mar 2007

Ulster Bank has introduced Northern Ireland's first 40 year term mortgage to help first time buyers gain access to the buoyant local housing market. The 100 per cent mortgage also offers discounts on home insurance and mortgage repayment packages to first time buyers, who have been increasingly squeezed from the market as prices across Northern Ireland have accelerated.

The increased term makes mortgages up to the value of 200,000 much more accessible for those taking their first step onto the property ladder.

"Our affordability calculation for each first time buyer means borrowers are assured of not over-stretching themselves with their monthly mortgage repayments, and as a responsible lender we focus on reducing the monthly outgoing as much as possible," says Derek Wilson, Ulster Bank's Head of Mortgages.

"We have just launched a 5.14 per cent fixed rate, this is the lowest Fixed Rate (the overall cost of comparison is 7.3% APR), no deposit 100 per cent mortgage available in the Northern Ireland market," Mr Wilson continues.

To coincide with the launch of the 40 year term package, Ulster Bank has also published an eight-step first time buyer guide which covers everything from how to work with the lender to ensure a reasonable maximum mortgage value to how to deal with gazumping - the act whereby a vendor reneges on an accepted offer to take a subsequent higher offer.

"First time buyers aren't only struggling with price rises and affordability issues in Northern Ireland," says Mr Wilson, "they also, naturally enough, know little about the process of buying a property.

"The guide is a practical tool which effectively takes them through the process protecting them along the way with sound information and arming them with handy hints throughout."

First Time Buyers 100% Mortgage: What I Need Is A Step By Step Guide takes newcomers to the property market through the eight crucial steps of first-time ownership including:

• How much can you afford?
• Start looking!
• Be ready to make an offer - get your mortgage arranged!
• Choose a solicitor
• Make your offer
• Have the property surveyed
• Exchanging contracts
• Moving day!

First time buyers can contact Ulster Bank on 0800 704 704 for more information.

First time homebuyer Ciaran Stuart (24) from Belfast says that strong bidding on houses within his price bracket makes getting onto the property ladder extremely difficult. "I am currently looking at properties across Belfast and right out to Lisburn. The bidding process, particularly in south Belfast, is pushing prices very high and probably out of the reach of most first time buyers. A 40-year mortgage would certainly appeal to me and would allow me to borrow a bit more without overstretching myself with the monthly repayments."