Article date: 15 November 2001
Norwich Union is reducing the interest rate on its EquityRelease loans with effect from Monday 19 November. The reduction isin line with the recent fall in long term interest rates.
The new interest rate for Norwich Union’s Flexible CashRelease Plan, which allows customers over the age of 60 to releasea proportion of the value of their home in the form of a cash lumpsum, is 7.79% (cut from 8.25%).
The rate for the Flexible Income Release Plan, which enablescustomers over 60 to generate a regular income, falls from 8.4% to7.94%.
Mark Kelly, director of Norwich Union Personal Finance, said:“Norwich Union’s equity release plans offer customers aloan with the security of a fixed rate of interest for life.
“The most appropriate market benchmark for lending of thistype is long term gilt yields, and over recent weeks these havefallen. I’m delighted that we are able to pass this reductionon to our customers in the form of reduced interestrates.”
Any customer who has already applied for a plan, but has not yetreceived their loan will automatically receive the benefit of thenew rate.
For further media information, contact David Ross at NorwichUnion Press Office on 08703 666860
Notes to Editors:
- Norwich Union offers two options for people wanting to releasecash from their home. The Flexible Cash Release Plan releases acash lump sum and the Flexible Income Release Plan enablescustomers to receive a regular income – or the option totake up to 25 per cent of the money released as a cash lump sum aswell as a regular income. Loans are secured by a legal charge ontheir property.
- Security is required CHECK THAT THIS MORTGAGE WILL MEET YOURNEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR WANT YOUR FAMILY TOINHERIT IT. IF YOU ARE IN DOUBT SEEK INDEPENDENT ADVICE.
There is nothing to repay during the customers’ lifetimeunless the house is sold or they need to go into long termcare.
The plans should be seen as a lifetime commitment. Substantialearly repayment charges may be payable if the loan is repaid for areason other than death or long term care needs.
Full terms and conditions or a personal illustration areavailable on request.
The income under a Flexible Income Release Plan is provided by aNorwich Union Immediate Life Annuity. The annuity has no cash invalue at any time. Part of the income received under a FIRP istaxable as savings income.
Entitlement to state/tax benefits may be affected by taking outan equity release plan.
Norwich Union only advises on its own products.
- Norwich Union’s news releases are available on thisinternet site
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- An ISDN facility is available for studio quality interviews.Call the press office on 08703 66 68 68
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