Article date: 18 December 2000
Norwich Union is offering IFAs access to an exclusive 100% LTVmortgage* with a 3 year discount and no early repayment fee.
This offer is being made in response to a gap in the market forclients needing a 100% mortgage, who have until now had very littlechoice available. The most popular choices have been either a lowinitial rate with extended early repayment fee or a longer termfixed rate with high repayment level.
The mortgage is offered in association with The Royal Bank ofScotland and is available to clients looking for the flexibility ofa generous discount of 1.30% for 3 years and the additional benefitof no early repayment fees. Legal and valuation fees can also beadded to the loan to a maximum of £1,000.**
Jon Round, Head of Mortgage Development for Norwich Union,commented: "This product will enable IFAs to target clients lookingfor a 100% mortgage with no early repayment fees. This new offerclearly demonstrates our commitment to the IFA market and toproviding market leading mortgage solutions."
IFAs will benefit from procuration fees of 0.45% for loans up to£75,000 and 0.55% for loans up to a maximum of £150,000 oncompletion of the mortgage application.
Information on this product or any others from Norwich Union isavailable to IFAs by calling 0845 845 1388.
* 100% mortgage available for loans between£25,000
** Legal and valuation fees will be added at 100% LTV.
The Offer in Detail
- Maximum loan to value - 100%
- Available to: first time buyers, subsequent purchasers andremortgages throughout England, Scotland, Wales and NorthernIreland
- Interest rate set at 1.30% discount relating to The Royal Bankof Scotland's 100% Variable Mortgage Rate until 1st February 2004(initial rate currently 6.94%, APR 7.73%). Thereafter it convertsback to The Royal Bank of Scotland Standard Variable Rate usuallyapplicable to mortgages less that 100% (equivalent to 0.5%discount on the Bank's 100% Variable rate).
- Incentives: legal and valuation fees can be added to the loansubject to the maximum loan to value. (A maximum of £1000 can beadded over 100% loan to value). Valuation fee must be paid onapplication but, will be refunded on completion and the amountadded to the loan.
- Repayment types accepted: capital & interest, endowment,pension and ISA.
- Maximum loan - £150,000 Minimum loan - £25,000
- Mortgage Indemnity Premium: (can be added to loan)
|% loan to Valuation/Purchase Price||Rates|
|75.01% to 90%||No charge|
|90.01% to 95%||8.95%|
|95.01% to 100%||12.0%|
- Income multiples: 3.25 x applicant's income plus, 1 x jointapplicant's income. Alternatively, 2.75 x joint income can beconsidered.
- Early repayment fee: none
- This product is portable.
***Typical example 6.94%***
The APR of 7.73% is based on the following assumptions: capitalrepayment mortgage on a property valued at £50,000 repaid over 25years. 24 x gross monthly repayments of £ 292.00 assuming a rate of4.99%, followed by 276 monthly payments of £357.00 assuming therate reverts to the current standard variable rate of 7.74%.
In this example, the total amount payable would be £109,839.00.This includes £59,893.00 total gross interest payable, £600 legalfees, £160 valuation fee, £1,500 higher lending fee and £75sealing/deeds release fee. A completion of 1st January isassumed.
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.
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 tradingbrand of holding company, CGNU plc, which was created from themerger between 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).
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