NIB launches Loan to Value mortgages

National Irish Bank today introduced its new LTV (Loan to Value) mortgage pricing model, directly linking the interest rate to the value of the property.

The bank claim that Irish homeowners could save more than €1,500 per year or a total of €28,000 in their repayments over the life of a €250,000 mortgage – assuming 18 years remaining on a house valued at €500,000.

The LTV mortgage is aimed at homeowners who have built up equity in their home, particularly those on a standard variable rate mortgage with their existing lender. It means that the home owner can take advantage of Ireland’s booming property market and free up extra money.

The switching costs will be paid by National Irish Bank, excluding Government stamp duty.

“Homeowners are paying too much for their mortgages today,” said National Irish Bank CEO Andrew Healy. “Mortgage pricing has fundamentally changed for the better for those who are prepared to switch to National Irish Bank.

“This is a call to action for all mortgage holders, particularly those on standard variable rates, to check out what their mortgage is costing them.

“I am confident that, when they make the comparison, customers will see that National Irish Bank’s LTV mortgage could save them thousands of euros over the life of their mortgage. We are rewarding people for the equity they’ve built up in their property.”