Norwich Union reduces rate on Lifetime Mortgage

Article date: 26 November 2007

Norwich Union is reducing the interest rates on its Fixed Rate Lifetime Mortgage and Cash Reserve Option plans from Monday, 26 November 2007.


The changes are as follows*:

New interest rate

Overall cost for comparison

Previous interest rate

Fixed Rate Lifetime Mortgage introduced by intermediaries

6.59%

6.9% APR

6.79%

Fixed Rate Lifetime Mortgage introduced by NUPF salesforce

6.89%

7.2% APR

7.09%

Cash Reserve Option introduced by intermediaries

6.69%

7.1% APR

6.89%

Cash Reserve Option introduced by NUPF salesforce

6.99%

7.4% APR

7.19%

All APRs listed are typical. The actual rate will depend upon personal circumstances.

The fixed rate on application cases which are still within their guarantee period are not impacted by this rate change. The fixed rate on completion cases which are received between 20 August and 26 November will receive the new rates.

Dominic Fraser-Smith, group product manager, Norwich Union Post Retirement Products, said: "As the market leader in the equity release sector, we are constantly striving to offer the most competitive rates to our customers. Recent movements in the cost of funding and distribution have enabled us to reduce our rates.

"At Norwich Union we review our interest rates on an ongoing basis, in line with market conditions and will continue to try and be as flexible and responsive as possible in the future to offer the best possible value to our customers."

-ends-

Press office contacts:                     

Norwich Union
Sarah Horner 01904 452828 Out of hours 07800 691569
Louise Soulsby 01904 452617 Out of hours 07800 699526

The Wriglesworth Consultancy
Lee Blackwell / Suman Katyal
Telephone: 0207 845 7900
E-mail: l.blackwell@wriglesworth.com

Notes to editors:
* Please note, the interest rates shown are the monthly equivalent rates. Norwich Union applies rates annually. The yearly cost of the loan is shown as the APR (annual percentage rate).

About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.

Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.

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