Article date: 3 August 2001
The UK’s largest insurer, Norwich Union is offering a newthree year stepped discount mortgage with a 2% discount for thefirst 12 months. This latest mortgage gives an exceptional initialrate of 4.74%, with customers benefiting from no up- frontcosts.
- Free valuation
- 2% discount for first year
- 1% discount for second year
- 0.5% discount for third year
- Procuration fee of 0.25% of loan
- Redemption penalty during first three years of loan
Head of mortgage development at Norwich Union, Jon Roundcommented “This mortgage will attract people buying theirfirst home as it offers them an attractive series of discountswithout needing to pay any up front costs.”
Additional product details:
- The maximum loan can be 95 % of the value of the property (5%deposit)
- An arrangement fee of £195 is required, however this can beadded to the loan
- This product is offered in conjunction with Norwich andPeterborough Building Society
Customers wishing to take advantage of this offer, or gainfurther information on any other mortgage products can contactNorwich Union on 0845 845 1388.
Typical example NU exclusive three year Stepped DiscountMortgage Year 1 - 2% discount, Year 2 - 1% discount, Year 3 - 0.5%discount (6.9% APR).
Example: A borrower applying for a stepped discount mortgage of£50,000 secured over 25 years for buying a house at £75,000.
Assuming completion takes place on 29 June 2001, gross monthlyrepayments for year 1 would be £288 (Interest rate 4.74%), for year2 would be £318 (Interest rate 5.74%), for year 3 would be £334(Interest rate 6.24%), and for subsequent years £350 (Interest rate6.74%). The APR for the loan would be 6.9%. The total amountrepayable to the Society over 300 months would be £103,831, whichincludes the initial amount borrowed of £50,000, solicitor’scharge of £118, a mortgage application fee of £195 and a dischargefee of £55. Interest rates (including the APR), premiums, chargesand fees may vary.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON AMORTGAGE OR OTHER LOAN SECURED ON IT.
Mortgages are subject to status and satisfactory security. Incertain circumstances a life assurance policy may be required.Mortgage loans are not available to anyone under the age of 18.Loans are secured on your home. Written quotations are available onrequest from the Society.
Norwich Union subscribes to the Mortgage Code – copies areavailable on request.
Notes to editors
- 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.
- CGU plc and Norwich Union plc merged on 30 May 2000 to createCGNU plc, the UK’s largest insurance group and one of thetop-five insurers in Europe with substantial positions in othermarkets around the world, making it the world’s sixthlargest insurer based on gross worldwide premiums.
- CGNU’s principal business activities are long-termsavings, fund management and general insurance, with worldwidepremium income and retail investment sales from ongoing businessof over £27 billion and assets under management of more than £200billion.
- 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 thisinternet site
- A selection of images are available from the CGNU Newscastsite at www.Newscast.co.uk
Press office contacts:
Out of hours
James Evans 08703 66 68 78 07790 487105
Louise Goffee 08703 66 68 70 07747 764342