Leading UK insurer Norwich Union is now offering a 2% discount on a standard variable rate mortgage for the first 12 months. In association with Chelsea Building Society, Norwich Union's latest mortgage offer gives an outstanding initial rate of 5.24% gross (APR 7.1%). It also benefits from a 1.75% discount in the second year and a £250 cashback paid on completion of the deal.
Leading UK insurer Norwich Union is now offering a 2% discount on a standard variable rate mortgage for the first 12 months. In association with Chelsea Building Society, Norwich Union's latest mortgage offer gives an outstanding initial rate of 5.24% gross (APR 7.1%). It also benefits from a 1.75% discount in the second year and a Ł250 cashback paid on completion of the deal.
Head of Norwich Union's mortgage development, Jon Round commented: "This is a great offer and gives good value to borrowers looking for a reduced rate in the first two years - particularly when there can be other house expenses to take into consideration. We want to demonstrate our commitment to the IFA market and provide products that appeal to a wide audience and offer a competitive rate."
IFAs will benefit from a procuration fee of 0.35% of the loan (minimum Ł175).
IFAs who wish to take advantage of any of these offers can contact 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 12 months.
- Initial rate 5.24% (APR 7.1%)
- Ł250 cashback following completion
- No arrangement fee
- Standard admin fee of Ł245, of which Ł195 payable up front and Ł50 deducted from advance
- ERP: 3% of sum repaid during first two years
- No compulsory insurances
- No Higher Percentage Lending Fee
- Minimum Loan Ł20,000 (Ł25,000 for remortgages)
- Maximum Loan Ł1,000,000
5.24% - Discounted Mortgage (APR 7.1%)
Typical Example - APR 7.1%
Based on an Interest Only Mortgage of Ł60,000 (purchase price/valuation Ł100,000) over 25 years (300 monthly payments). The rate for the first 12 months will be 5.24% (a discount of 2% below the Society's standard variable rate), followed by 12 months at 5.49% (a discount of 1.75% below the Society's standard variable rate), thereafter payments revert to the Society's standard variable rate (currently 7.24%). It is assumed that the variable rate remains unchanged for the term, however the rate will rise and fall throughout the term. Total amount payable Ł166,560, including Ł106,350 interest payable, administration fee of Ł245, legal fees of Ł165 and discharge fee of Ł50, Ł250 cashback paid following completion.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT
Notes to editors
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK's largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world's sixth largest insurer based on gross worldwide premiums.
- CGNU's principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł210 billion.
- From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- Norwich Union's news releases are available on the internet at www.cgnu-group.com
- Full written details, including a quotation, are available on request
Press office contacts:
| James Evans | 08703 66 68 78 |
| Louise Goffee | 08703 66 68 70 |
| Out of hours | 07790 487105 |