Article date: 14 May 2002
A new mortgage, offering a two per cent discount on a standardvariable rate until 1 July 2004, is now available from NorwichUnion.
This new mortgage, offered through the Royal Bank of Scotland,gives a better choice for IFAs to select products for clients whoare looking for:
- A maximum loan of 75 per cent loan to value
- A significantly lower pay rate on the first two years
The discounted deal involves limited packaging requirements forIFAs, for example employed clients do not need to supply payslips,P60s or bank statements. This means that the client only has tocomplete an application form, provide evidence of identity andenclose the valuation fee.
Jon Round, Norwich Union’s head of mortgage development,commented: “This new deal offers excellent value forborrowers. In view of the frenetic competition in the housingmarket this simplified process can make the difference between acustomer getting a house or losing it.”
This product is exclusive to Norwich Union IFA Club members andYour Move estate agent’s financial consultants – formore information on this offer please contact Norwich Union on 0845845 1388.
Press office contacts
James Evans, Norwich Union 08703 66 68 78
Out of hours 07790 487105
Louise Goffee, Norwich Union 08703 66 68 70
Out of hours 07810 057362
Ian Beggs, Norwich Union 08703 66 68 71
Out of hours 07790 487533
Notes to editors
The offer in detail:
- Discount of 2% off the standard variable rate, until 1 July2004
- Initial pay rate of 3.95%
- £250 arrangement fee which can be added to the loan atcompletion
- Maximum 75% loan to value
- Minimum loan £50,000
- Procuration fee of 0.45% of loan payable between £50,000 and£75,000, 0.55% for loans over £75,001. Minimum £225 –Maximum £1,375
- This offer is available from 29 April 2002
- The Royal Bank of Scotland’s current standard variablerate is 5.95%
Typical example: based on a couple, both aged 25 takinga £70,000 capital repayment mortgage repayable over 25 years on aproperty valued at £100,000. The offer is an interest rate of3.95% until 01 July 2004, then the Bank’s standard variablemortgage rate thereafter, currently 5.95%, APR 6.2%. There willbe 24 monthly repayments of £367.56 and finally 276 repayments of£443.34. The total amount payable of £135,622.28. The APRincludes the 300 monthly repayments, solicitors’ fees of£850, valuation fee of £200 (which includes an administration feeof £60), the Bank’s sealing fee of £75, a completion fee of£250, a remittance fee of £25 and insurance premiums of £10.13per month. An early repayment charge of 2% of the amount repaidwill apply if the loan is repaid or another Royal Bank ofScotland mortgage is switched to in the first two years of themortgage. Minimum loan £50,000. The mortgage referred to isavailable up to and including 75% of the valuation or purchaseprice (whichever is lower) of the property. All rates correct asat 29.04.02.
- 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.
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