Norwich Union offers 2% discount on variable rate mortgage with a £250 cashback

Article date: 12 April 2001

Leading UK insurer Norwich Union is now offering a 2% discounton a standard variable rate mortgage for the first 12 months. Inassociation with Chelsea Building Society, Norwich Union's latestmortgage offer gives an outstanding initial rate of 5.24% gross(APR 7.1%). It also benefits from a 1.75% discount in the secondyear and a £250 cashback paid on completion of the deal.

Head of Norwich Union's mortgage development, Jon Roundcommented: "This is a great offer and gives good value to borrowerslooking for a reduced rate in the first two years - particularlywhen there can be other house expenses to take into consideration.We want to demonstrate our commitment to the IFA market and provideproducts that appeal to a wide audience and offer a competitiverate."

IFAs will benefit from a procuration fee of 0.35% of the loan(minimum £175).

IFAs who wish to take advantage of any of these offers cancontact Norwich Union on 0845 845 1388 for further details.

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Product Details

  • 2.00% discount for 12 months followed by 1.75% discount for 12months.
  • Initial rate 5.24% (APR 7.1%)
  • £250 cashback following completion
  • No arrangement fee
  • Standard admin fee of £245, of which £195 payable up front and£50 deducted from advance
  • ERP: 3% of sum repaid during first two years
  • No compulsory insurances
  • No Higher Percentage Lending Fee
  • Minimum Loan £20,000 (£25,000 for remortgages)
  • Maximum Loan £1,000,000

5.24% - Discounted Mortgage (APR 7.1%)

Typical Example - APR 7.1%
Based on an Interest Only Mortgage of £60,000 (purchaseprice/valuation £100,000) over 25 years (300 monthly payments). Therate for the first 12 months will be 5.24% (a discount of 2% belowthe Society's standard variable rate), followed by 12 months at5.49% (a discount of 1.75% below the Society's standard variablerate), thereafter payments revert to the Society's standardvariable rate (currently 7.24%). It is assumed that the variablerate remains unchanged for the term, however the rate will rise andfall throughout the term. Total amount payable £166,560, including£106,350 interest payable, administration fee of £245, legal feesof £165 and discharge fee of £50, £250 cashback paid followingcompletion.


Notes to editors

  • CGU plc and Norwich Union plc merged on 30 May 2000 to createCGNU plc, the UK's largest insurance group and one of the top-fiveinsurers in Europe with substantial positions in other marketsaround the world, making it the world's sixth largest insurerbased on gross worldwide premiums.
  • CGNU's principal business activities are long-term savings,fund management and general insurance, with worldwide premiumincome and retail investment sales from ongoing business of over£27 billion and assets under management of more than £210billion.
  • From October 2000, the combined life and pensions, generalinsurance and retail fund management businesses in the UK operateunder the Norwich Union brand, while the institutional investmentbusiness operates under the Morley Fund Management brand.
  • Norwich Union's news releases are available on the internet
  • Full written details, including a quotation, are available onrequest

Press office contacts:

James Evans08703 66 68 78
Louise Goffee08703 66 68 70
Out of hours07790 487105

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