Norwich Union, in conjunction with Mortgage Express, has introduced a new buy-to-let fixed rate mortgage, fixed at 5.74 per cent until December 2003.
Norwich Union, in conjunction with Mortgage Express, has introduced a new buy-to-let fixed rate mortgage, fixed at 5.74 per cent until December 2003.
Key benefits include:
- No extended tie-in after the fixed rate finishes
- No mortgage indemnity premium
- Flexible facility – borrowers can overpay up to double the normal monthly repayment, can underpay or drawdown funds from any previous overpayments.
A minimum loan value of Ł40,000 has been designated with no upper limit on the number of properties, up to a total lending value of Ł1,000,000. A procuration fee of 0.45 per cent of the loan with a minimum of Ł175 is also payable to IFAs on completion.
Jon Round, head of mortgage development at Norwich Union, commented: “Buy-to-let mortgages are becoming increasingly popular and with this affordable fixed rate deal, borrowers have extra peace of mind, knowing what their monthly repayments will be. The 5.74 per cent fixed rate is great value for money and with the extra flexibility built-in, we are expecting lots of interest in the market.”
Further information on this product and other mortgage products available from Norwich Union can be obtained by calling 0845 8451388.
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Press office contacts:
James Evans, Norwich Union 08703 66 68 78 Out of hours 07790 487105
Louise Goffee, Norwich Union 08703 66 68 70 Out of hours 07810 057362
The offer in detail:
- 5.74% fixed until 3 December 2003
- Minimum loan value Ł40,000
- Maximum 80% loan to value (LTV)
- No mortgage indemnity premium
- Ł325 completion fee (added to loan)
- Redemption penalty, 6 months interest at SVR until 3 December 2003
- No assignment of life cover is required
- Mortgage Express can provide a professional letting and management service, if required.
TYPICAL EXAMPLE
Buy to Let - 5.74 per cent fixed to 3 December 2003.
Based on a mortgage of Ł80,000 to buy a property valued at Ł100,000, repayable over 25 years (300 monthly payments) on an interest only basis. Initial loan to value 80% APR 6.0% (variable) and total amount payable of Ł195,725.04. The total amount includes:
| Legal fees | Ł146.88 |
| Valuation fee | Ł195.00 |
| Administration fee | Ł325.00 |
| Sealing fee | Ł75.00 (charged on redemption, this covers storage, administration and release of mortgage documents) |
The example assumes that all payments are made when due throughout the term. It also assumes that there is no change in the Bank of England’s current base of 4.00% throughout the term of the mortgage and no change to the value of the mortgaged property.
| Rate | Months | Gross Payment |
| 5.74% | 1 to 24 | Ł382.67 |
| 5.75% | 25 to 300 | Ł383.33 |
Also available on a repayment basis.
Loans are subject to status and to valuation approval by the Company. This loan will be secured on your home. Applicants must be 25 or over. Mortgage security is required. The interest rate is variable and therefore so is the APR. For loans that redeem (in full or in part) before 3/12/2003, the Company reserves the right to charge an early repayment fee of six months’ interest at the Standard Variable Rate. Written quotations are available on request.
Information correct as at 22 November 2001.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
Notes to editors
- Norwich Union is the UK’s largest insurer. It is the UK’s largest provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with over 20 building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
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