Norwich Union offers new fixed, flexible & 100% mortgages

Article date: 22 February 2001

Norwich Union is widening its choice of mortgage productsavailable to IFA's through its panel of lenders with the launch ofthree exceptional offers.

  • 5.75% (7.8% APR) two year fixed rate up to 100 % LTV with noMIG
  • 5.60% (6.9% APR) three year flexible fixed rate up to 90 %LTV
  • 4.99% (7.2% APR) one year fix and two year discount up to 95 %LTV with a FREE Valuation

The 5.75% (7.8% APR) two year fixed rate runs until 3 March 2003is one of the lowest fixed rates available to borrowers wishing toborrow up to 100% LTV.

The flexible 5.60% (6.9% APR) three year fixed rate runs until 1April 2004 with no tie ins beyond the fixed rate with the addedbonus that customers can repay up to 10% capital each year penaltyfree during the tie-in period and have the interest recalculateddaily.

The fixed / discount option offers a fixed rate of 4.99% (7.2%APR) for the first year followed by a 1.80% discount in the secondyear and 1.30% in the third year. Again up to 10% capital can berepaid each year without penalty during the tie in period plus, afree valuation is available.

Jon Round, Head of Mortgage Development for Norwich Union,commented: " This is a tremendous package of mortgage productswhich delivers great value to borrowers whether it's a fixed,discounted or flexible mortgage they want. These productsdemonstrate our commitment to the IFA market by offering productsto suit their clients' individual needs."

Each of the products offered is in association with differentlenders. IFAs who wish to take advantage of any of these offers cancontact Norwich Union on 0845 845 1388 for further details.

The offers in detail:

5.75% (7.8% APR) Fixed until 03/03/2003
Offered via Mortgage Express (subsidiary of Bradford &Bingley)
Procuration fee 0.25% (minimum £175)
Available up to 105% LTV (102% for first time buyers)
£325 completion fee which can be added
Early Repayment penalty: 3 months interest at fixed rate until03/03/2004
Available for house purchases only
Minimum loan £40,000
Maximum loan £250,000
Available in England, Scotland, Wales & Northern Ireland
No compulsory insurances

Typical example: 100%+ - 5.75% fixed until 3/3/2003

Based on a mortgage of £60,000 to buy a property valued at£60,000, repayable over 25 years (301 monthly payments) on aninterest only basis. Initial loan to value 100% APR 7.8% (variable)and total amount payable of £174,513.76. The total amountincludes:

Legal fees £146.88
Valuation fee £191.88
Administration fee £325.00
Sealing fee £75.00
  (charged on redemption, thiscovers storage, administration and release of mortgagedocuments)

The example assumes that all payments are madewhen due throughout the term. It also assumes that there is nochange in the Bank of England's current base of 6.00% throughoutthe term of the mortgage and no change to the value of themortgaged property.

RateMonthsGross Payment
5.75%1 to 24£287.50
8.00%25 to 300£387.50

Also available on a repayment basis.

Loans are subject to status and to valuation approval by theCompany. This loan will be secured on your home. Applicants must be21 or over. Mortgage security is required. The interest rate isvariable and so therefore is the APR. For loans that redeem (infull or in part) before 3/3/2004, the Company reserves the right tocharge an early repayment fee of three months' interest at thefixed interest rate. Written quotations are available on request.Information correct as at 19/02/2001.

5.60% (6.9% APR) Flexible Fixed until 01/04/2004

Offered in association with Leeds & Holbeck BuildingSociety
Procuration fee 0.3% (minimum £150)
Available up to 90% LTV for purchase and remortgage
£295 completion fee which can be added
Early repayment penalty: 3 months interest at fixed rate until 1stApril 2004
10% of the original loan amount borrowed may be repaid withoutincurring any repayment fees each year for the first 3 years - thenunlimited
Minimum valuation £25,001
Maximum loan £500,000
This product is portable
Available in England, Scotland, Wales & Northern Ireland
No compulsory insurances

Typical example: 5.60% (6.9% APR) Flexible Fixed until01/04/2004

The APR of 6.9% is calculated on the basis of a £49,500 interestonly mortgage on a property valued at £55,000 repaid over 25 years.36 monthly payments of £231.00 assuming a rate of 5.60%, followedby 264 monthly payments of £284.63 assuming the rate reverts to thecurrent Leeds & Holbeck Flexible Variable Rate of 6.90%. Totalamount payable of £133,682.82 calculated to include £84,182.82total interest payable, £164.50 legal fees, £175 valuation fee,£295 completion fee, £50 administration fee and £40 deeds releasefee. Completion date 1st April 2001.

4.99% (7.2% APR) Fixed until 01/04/2002 followed by 1.80%discount to 01/04/2003 then 1.30% discount to 01/04/2004

Offered in association with Portman Building Society
Available up to 95% LTV for First Time Buyers, house purchase &remortgage
Procuration fee 0.35% (minimum £225)
£300 acceptance fee which can be added
Early Repayment Penalty: 5% of capital repaid until 1st April2004
10% of the original loan amount borrowed may be [repaid withoutincurring any repayment fees in each 12 month period from 1st Aprilto 1st April 2004. The yearly allowance cannot be accrued year onyear.
Minimum loan £15,000 (£25,500 for remortgages)
Minimum valuation £30,000
Maximum loan £750,000
Available in England, mainland Scotland & Wales
No compulsory insurances

Typical example based on a fixed rate of 4.99% until 1st April2002, followed by a 1.80% discount until 1st April 2003, followedby a 1.30% discount until 1st April 2004, using the Society'scurrent Standard Variable Rate of 7.29% and assuming completion on31st March 2001. The example below is based on an interest onlymortgage of £75,000 over 25 years with a property value of£100,000; acceptance fee £300; legal fee £10; fund release fee £25and sealing fee £55.
Gross monthly payments are 1 x £334.95; 11 x £311.88; 12 x £343.13;12 x £374.38; 263 x £455.63 with a final gross payment of£75,510.63. Accrued interest £23.07 (gross) and total amountpayable £208,232.07 (gross).

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

These examples do not constitute a quotation or contract. Fullwritten details, including a quotation are available on request.All loans are subject to status and satisfactory valuation. Loansare not available for persons under 18 years of age.


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. Norwich Union is the UK life and general insurance trading brandof holding company, CGNU plc, which was created from the mergerbetween CGU and Norwich Union on 30 May 2000.
3. Norwich Union is the UK's largest life and pension company(based on 2000 new premium income).

Press Office contacts:

James Evans
08703 66 68 78

Louisa Steel
08703 66 68 71

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