Article date: 19 November 2001
Norwich Union, in association with Norwich & PeterboroughBuilding Society, has launched a new mortgage offering an exclusive4.24% fixed rate for one year followed by a further 1% discount onthe standard variable rate in year two.
Other benefits include:
- Free valuation
- No arrangement fee
- Low redemption penalty
- No extended lock-ins
Head of Norwich Union’s mortgage development, Jon Roundcommented: "This mortgage rate is highly competitive and representsexcellent value for borrowers. In addition to this low initial payrate, no up front fees are required and borrowers also benefit froman additional 1% discount in the second year of the mortgageterm.
"By offering a reduced fixed rate in the first year followed bya discounted variable rate, this mortgage deal delivers costsavings when it’s most required – in the first year ofbuying a new house - and the extra security of discounted rate inthe second year."
Further information on this product and other mortgage productsavailable from Norwich Union can be obtained by calling 08458451388.
The offer in detail:
- Redemption – six months interest at the payable rate infirst year then three months interest at the payable rate in thesecond year (no overhang)
- No mortgage indemnity premium up to 90% loan to value
- Maximum loan to value (LTV) 95%
- Procuration fee is 0.35% (minimum £125, maximum £1,000)
TYPICAL EXAMPLE: FIXED FOR ONE YEAR FOLLOWED BY 1% DISCOUNT FORONE YEAR
A couple both aged 25, applying for a standard variable ratemortgage of £85,000, secured over 25 years for the purchase of aproperty at £100,000. Assuming completion takes place on 23rdOctober 2001, gross monthly repayments for the fixed rate period of12 months would be £465 followed by 12 monthly discounted paymentsof £508, followed by 276 monthly repayments of £559 for theremaining term of the mortgage (based on our current standardvariable rate). This illustration has been prepared on theassumption that the interest rate(s) applicable at the start of themortgage term will not continue throughout and the Society’sstandard variable rate will be applied after the period duringwhich the special interest rate applies.
This is based on an interest rate of 4.24%.
The APR for the whole loan would be 6.1% variable.
The total amount repayable to the Society by monthly paymentswould be £166,111. This includes:
Initial amount borrowed £85,000
Solicitor’s charge £149
Discharge fee £55
Interest rates (including the APR), premiums, charges and feesmay vary. The APR and payments set out in this example would, ofcourse, be different if the interest rate were to change.
Mortgages are subject to status and satisfactory security. Incertain circumstances a life assurance policy may be required.Mortgage loans are not available to anyone under the age of 18.Loans are secured on your home. Written quotations are available onrequest from any branch of the Society.
Norwich and Peterborough Building Society represents only theNorwich Union Marketing Group, members of which are regulated bythe Personal Investment Authority and/or IMRO, for life assurance,pensions and investments. Any financial advice given on lifeassurance, pensions and investments will relate only to theproducts of Norwich Union or Norwich and Peterborough BuildingSociety.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON AMORTGAGE OR OTHER LOAN SECURED ON IT.
Notes to editors
- Norwich Union is the UK’s largest insurer. It is theUK’s largest provider of life, pensions and investmentproducts and one of the leading IFA providers. IFAs provide around75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with over 20 buildingsocieties and other leading UK brand names including TescoPersonal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on thisinternet site
- A selection of images are available from the CGNU Newscastsite at www.newscast.co.uk
- An ISDN facility is available for studio quality interviews.Call the press office on 08703 666873
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Press office contacts:
James Evans, Norwich Union 08703 66 68 78
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Louise Goffee, Norwich Union 08703 66 68 70
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