Norwich Union relaunches discounted variable mortgage

Article date: 23 April 2001

Norwich Union has launched its latest mortgage offer for IFAsgiving them access to a discounted rate of 1.79% off the standardvariable rate of 7.09% (APR 7.3%), for a full two years.

The mortgage allows IFAs to select the right benefit for clientswho are looking for:

  • No tie-in fees at any time, even during the discountperiod
  • No application fee
  • Free legal fees OR a £250 cashback on remortgages
  • £250 cashback if purchasing

Jon Round, Norwich Union's head of mortgage development,commented "This mortgage offer marks the return of one of our mostsuccessful products over the past year. The absence of anyredemption penalty or application fee plus, the generous discountfor two years, has made this product extremely popular withIFAs."

Buildings & Contents insurance is compulsory for two yearsor the discount is reduced by 0.24%. A procuration fee of 0.3% ofthe loan with a minimum of £150 is payable to IFAs oncompletion.

Further information on this product or any other mortgageproducts available from Norwich Union can be obtained by calling0845 845 1388.

- Ends -

The offer in detail:

  • 1.79% discount for two years, initial rate 5.30% (APR7.3%)
  • No redemption lock-in at any time
  • No application fee
  • Buildings & Contents compulsory for 2 years or a 0.24%loading
  • No higher lending fee to 90% loan to value (LTV)
  • Free legal fees or £250 cashback for remortgages
  • £250 cashback for house purchase
  • Procuration fee 0.30%, minimum £150
  • This product is offered in conjunction with Leeds &Holbeck Building Society

Typical example:

The APR of 7.3% is calculated on the basis of a £52,250interest only mortgage on a property valued at £55,000 repaid over25 years. 24 monthly payments of £230.77 assuming a rate of 5.3%,followed by 276 monthly payments of £308.71 assuming the ratereverts to the current Standard Variable Rate of 7.09%. Totalamount payable £145,022.44 calculated to include £92,772.44 totalinterest payable, £164.50 legal fees, £984.50 Higher Lending Fee,£60 administration fee, £50 deeds release fee and £298 per yeartypical Homecover cost for 2 years (including insurance premiumtax). This assumes a completion date of 1 June 2001.

The property upon which the loan is required to be secured mustbe insured for the cost of replacement value.

This example does not constitute a quotation or contract.

Full written details, including a quotation are available onrequest. All loans are subject to status and satisfactoryvaluation. Loans are not available for persons under 18 years ofage.

Norwich Union subscribes to the mortgage code - copies areavailable on request.


Notes to editors

1. IFAs can benefit from the buying power of one of the largestmortgage intermediaries in the UK, through enhanced mortgageproducts, enhanced procuration fees - with dedicated service andsupport.

2. The APR rates stated are variable.

  • 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
Press office contacts:
James Evans08703 66 68 78
Louise Goffee08703 66 68 70
Out of hours07790 487105

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