Norwich Union offers special deal on Northern Rock's 'Together' mortgage products

Article date: 30 April 2002

The UK’s largest insurer, Norwich Union, is to offer twoexclusive Northern Rock Mortgage products from Northern Rock. Allapplicants who apply through Norwich Union for one of the“Together” or “Together Connections”flexible mortgage products available from Northern Rock will not becharged the normal administration fee of £125. This offer is onlyapplicable for a limited period.

This enhancement for consumers comes as a result of NorthernRock joining the Norwich Union IFA Mortgage Club Panel of lenderson the 1 April 2002.

Head of mortgage development at Norwich Union Jon Roundcommented: “This enhanced arrangement through Norwich Unionmakes a great product even more attractive.”

IFAs who submit applications on one of these products throughNorwich Union will receive a procuration fee of 0.5% of the advance(minimum £250 - maximum £1,000) plus an additional £100 forapplications before 1 June 2002.

Press office contacts

James Evans, Norwich Union 08703 66 68 78 Out of office 07790487105 Louise Goffee, Norwich Union 08703 66 68 70 Out of office07810 057362 Ian Beggs, Norwich Union 08703 66 68 71 Out of office07790 487533

Notes to editors

  • With a maximum loan to value of 125%, the NorthernRock’s “Together” range is more than a mortgage:
    • It combines a mortgage and unsecured credit facility.Clients may apply for a mortgage, to a maximum of 95% of thelower of either the value or purchase price of the property. Atthe same time they can agree an unsecured credit facility of upto 30% of the lower of either the value or purchase price of theproperty, subject to a maximum of £30,000.
    • Both the secured home loan and unsecured credit facility arecharged interest at the same attractive low rate.
    • “Together” also provides clients with theflexibility to repay the way they want. Clients have the freedomto overpay, either monthly or in lump sums, and redraw theoverpayments later if they need to. There are NO EARLY REPAYMENTCHARGES.
    • The “Together Connections” product takes the“Together” product a stage further –
      • Clients can connect their “Together” productto a Northern Rock Savings Account and/or Current Account, andit gives them the option to reduce the interest paid on theirborrowing.
      • Alternatively, clients can opt to receive interest ontheir Savings Account at the same rate as their“Together” Mortgage. Traditionally, clients wouldpay interest at a higher rate on their borrowing than theyreceive on their savings. (please note that this would besubject to the deduction of basic rate tax, whereappropriate)


The together variable rate is effective 20.03.2002. The interestrate charged on together variable is currently 5.59% P.A. (6.0%APR) for the whole loan, where the secured LTV is up to andincluding 75% of the property's value, 5.69% P.A. (6.0% APR) forthe whole loan, where the secured LTV is up to and including 90% ofthe property's value or 5.84% P.A. (6.0% APR) where the secured LTVis up to and including 95% of the property's value. Although therate is variable the 95% loan to value product is guaranteed to beno more than 1.85% above the Bank of England Base Rate (currently4.00%) until 1 January 2005 and then the rate is guaranteed to bebelow Northern Rock's Standard Variable Mortgage Base Rate for therest of the life of the loan. The 75% loan to value product willremain below the 90% loan to value product for the life of the loanand the 90% loan to value product will remain below the 95% loan tovalue product for the life of the loan. Example: A capital andinterest secured loan of £45,000 over a 25 year term completing on1.05.2002 (300 monthly payments), secured against a property beingpurchased for £60,000. 31 monthly secured loan payments of £279.91(calculated at 5.59% P.A.) followed by 269 monthly payments of£283.90 (rate assumed to be 5.75% P.A.). Total amount payable£85,484.00. A capital and interest unsecured loan of £18,000 over a25 year term completing on 1.5.2002. 31 monthly payments of £111.51(calculated at 5.69% P.A.), followed by 269 monthly payments of£113.10 (rate assumed to be 5.75% P.A.). Total amount payable£33,879.00. Calculated to include an arrangement fee of £395.Solicitors costs of £117.50 and valuation fee of £110.00. For thepurpose of this example we have assumed that the applicant has nottaken the Help with Costs option. Both loans will be collected asone monthly payment. APRs may vary depending on the repayment termchosen.

Applications outside normal lending criteria - if we are unableto accept your application for a mortgage on the terms shown onthis section, we may still be able to offer you a mortgage onslightly less favourable terms. In such cases the Help with Costsfacility will not be offered.

The above example assumes that the applicant has not taken the'Help with Costs' option.

A written quotation on loans can be obtained on request. Onlyavailable to persons of 21 years of age or over. (18 years or overfor secondary applicant in the case of joint applications).

The mortgage will be secured on your property and a suitablelife policy may be required. The drawndown loan is unsecured.


  • 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 is available from the CGNU Newscast siteat
  • An ISDN facility is available for studio quality interviews.Call the press office on 08703 66 68 73

For all life & pensions media enquiries 08703 66 68 73
For all other media enquiries 08703 66 68 68

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