Norwich Union is pleased to announce its latest mortgage offer. IFAs can now access a 100% mortgage with a two-year discount and no mortgage indemnity guarantee (MIG) charge.
Norwich Union is pleased to announce its latest mortgage offer. IFAs can now access a 100% mortgage with a two-year discount and no mortgage indemnity guarantee (MIG) charge.
The mortgage is offered in association with The Royal Bank of Scotland and is in response to feedback from IFAs who wish to have more choice of products at 100% with no MIG charge. The additional benefits of a discounted rate of 1.25% for two years plus, the ability to add legal and valuation fees to the loan to a maximum of Ł1000* are also available.
Jon Round, Norwich Union's Head of Mortgage Development, commented: "Our latest offer will enable IFAs to save their clients thousands of pounds if they're looking for a 100% mortgage, as MIG can be very expensive over 95% LTV. In addition they can take advantage of savings on an initial discounted rate for two years."
IFAs will benefit from procuration fees of 0.45% for loans between Ł25,000 and Ł75,000 and 0.55% for loans over Ł75,000 up to a maximum of Ł1,500.
Further information on this product or any other mortgage products is available to IFAs by calling 0845 845 1388.
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* 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 and remortgages throughout England and Wales
- Interest rate set at 1.25% discount relating to The Royal Bank of Scotland 100% variable mortgage rate until 1st May 2003 (initial rate currently 6.74% - 8.4% APR). Thereafter it converts back to The Royal Bank of Scotland's 100% variable mortgage rate (currently 7.99%).
- Incentives: legal and valuation fees can be added to the loan subject to the maximum loan to value. (A maximum of Ł1000 can be added over 100% loan to value). Valuation fee must be paid on application but, will be refunded on completion and the amount added to the loan.
- Repayment types accepted: capital & interest, endowment, pension and Isa
- Minimum loan - Ł40,000 Maximum loan - Ł150,000
- Income multiples: 3.25 x applicant's income plus 1 x joint applicant's income. Alternatively 2.75 x joint income can be considered.
- Early repayment fee: 2% of amount redeemed until 1st May 2004. No partial redemptions allowed.
- Arrangement fee - Ł295 (can be added to loan on request).
Typical Example: 6.74% (1.25% discount until 1st May 2003). The APR of 8.4% variable is based on the following assumptions: a Ł60,000 capital repayment mortgage on a property valued at Ł60,000 repaid over 25 years. 25 gross monthly repayments of Ł414.17 assuming a rate of 6.74% followed by 275 payments of Ł459.90 assuming the rate reverts to the 100% variable mortgage rate of 7.99%. In this example , the total amount payable would be Ł140,299.75. This includes Ł80,299.75 total gross interest payable, Ł650 legal fees, Ł200 valuation fee, and Ł75 selling/deeds release fee. A completion date of 1st March 2001 is assumed. The property upon which the loan is required to be secured must be insured for the cost replacement value. This example does not constitute a quotation or contract. Full written details, including a quotation are available on request. All loans are subject to status and satisfactory valuation. Loans are not available for persons under 18 years of age.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
Notes to editors:
1. IFAs can benefit from the buying power of one of the largest mortgage intermediaries in the UK, through enhanced mortgage products, enhanced procuration fees - with dedicated service and support.
2. Norwich Union is the UK's life and general insurance trading brand of holding company, CGNU plc, which was created from the merger between CGU and Norwich Union on 30 May 2000.
3. Norwich Union is the UK's largest life and pensions company (based on 2000 new premium income).
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