Article date: 30 June 2003
Norwich Union, the UK’s largest provider of equity releaseproducts, is reducing the fixed rate of interest on its CashRelease Plan from 7.55% to 7.29% with immediate effect for newbusiness.
The Cash Release Plan is a mortgage style equity releaseproduct. Norwich Union does not offer a reversion type product.
Commenting, Paul Stokes, head of marketing at Norwich Unionequity release, said: “Long term gilt rates have shifteddownwards, so the costs to Norwich Union of raising funds throughthe money markets have also come down. We’re pleased to beable to pass this benefit onto consumers by cutting our fixed rateof interest by 0.26%. This makes Norwich Union’s rate one ofthe most competitive around, and of course we offer equity releaseboth direct and via the IFA channel.
“What we also need to see now is some consistency when itcomes to how equity release providers publicise their rates toconsumers. Norwich Union has always quoted an annual rate, which isconsistent with the traditional mortgage lenders. However, in theequity release market, all too often we see consumers and the mediabeing confused as providers promote their monthly rates, which areobviously lower. This is not in consumers’ interests and doesthe industry no good at all. We wish to see this practicestopped.”
Press office contacts:
Ian Beggs - 08703 66 68 71/07790 487533
James Evans - 08703 66 68 78/07790 487105
Louise Goffee - 08703 66 68 70/07810 057362
Notes for editors
- Minimum property values apply. Equity release is a lifetimeloan secured against your home. CHECK THAT THIS MORTGAGE MEETSYOUR NEEDS IF YOU WANT TO MOVE OR YOU WANT YOUR FAMILY TO INHERITIT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE. A personalillustration and full terms and conditions are available onrequest. Norwich Union equity release limited No. 3286484.Registered at 2 Rougier Street, York YO90 1UU. Not available inNorthern Ireland, the Channel Islands and the Isle of Man.
- Norwich Union is the UK’s largest insurer. It is aleading provider of life, pensions and investment products and oneof the leading IFA providers. IFAs provide around 70% of thecompany’s long-term savings business.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on the Avivaplc website at www.aviva.com/media