Article date: 14 November 2003
Norwich Union is increasing the fixed interestrates on its equity release Flexible Cash Release Plan with effectfrom 24 November 2003. The interest rate will increase from 7.15%to 7.35% for business introduced through IFAs and from 7.29% to7.49% for business that comes direct to Norwich Union.
The Flexible Cash Release Plan is a mortgage-based equity releaseproduct.
Paul Stokes, head of equity release marketing at Norwich Union,said:
"Equity release plans provide a solution for many elderly peoplewho have no other way of generating a cash lump sum and want tostay in their own home. The product is in essence a lifetimefixed-rate mortgage. As long-term interest rates are movingupwards (and therefore the costs to Norwich Union of raising fundsthrough the money markets), so is the cost toconsumers.
"This increased cost has been absorbed by Norwich Union in recentweeks but we now unfortunately have to pass on the increase inrates to new borrowers."
Press office contact:
James Evans – 01904 452791 / 07790 487105
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