The UK’s largest insurer, Norwich Union, is to offer two exclusive Northern Rock Mortgage products from Northern Rock. All applicants who apply through Norwich Union for one of the “Together” or “Together Connections” flexible mortgage products available from Northern Rock will not be charged the normal administration fee of £125. This offer is only applicable for a limited period.
The UK’s largest insurer, Norwich Union, is to offer two exclusive Northern Rock Mortgage products from Northern Rock. All applicants who apply through Norwich Union for one of the “Together” or “Together Connections” flexible mortgage products available from Northern Rock will not be charged the normal administration fee of Ł125. This offer is only applicable for a limited period.
This enhancement for consumers comes as a result of Northern Rock joining the Norwich Union IFA Mortgage Club Panel of lenders on the 1 April 2002.
Head of mortgage development at Norwich Union Jon Round commented: “This enhanced arrangement through Norwich Union makes a great product even more attractive.”
IFAs who submit applications on one of these products through Norwich Union will receive a procuration fee of 0.5% of the advance (minimum Ł250 - maximum Ł1,000) plus an additional Ł100 for applications before 1 June 2002.
Press office contacts
James Evans, Norwich Union 08703 66 68 78 Out of office 07790 487105 Louise Goffee, Norwich Union 08703 66 68 70 Out of office 07810 057362 Ian Beggs, Norwich Union 08703 66 68 71 Out of office 07790 487533
Notes to editors
- With a maximum loan to value of 125%, the Northern Rock’s “Together” range is more than a mortgage:
- It combines a mortgage and unsecured credit facility. Clients may apply for a mortgage, to a maximum of 95% of the lower of either the value or purchase price of the property. At the same time they can agree an unsecured credit facility of up to 30% of the lower of either the value or purchase price of the property, subject to a maximum of Ł30,000.
- Both the secured home loan and unsecured credit facility are charged interest at the same attractive low rate.
- “Together” also provides clients with the flexibility to repay the way they want. Clients have the freedom to overpay, either monthly or in lump sums, and redraw the overpayments later if they need to. There are NO EARLY REPAYMENT CHARGES.
- The “Together Connections” product takes the “Together” product a stage further –
- Clients can connect their “Together” product to a Northern Rock Savings Account and/or Current Account, and it gives them the option to reduce the interest paid on their borrowing.
- Alternatively, clients can opt to receive interest on their Savings Account at the same rate as their “Together” Mortgage. Traditionally, clients would pay interest at a higher rate on their borrowing than they receive on their savings. (please note that this would be subject to the deduction of basic rate tax, where appropriate)
TOGETHER VARIABLE
The together variable rate is effective 20.03.2002. The interest rate charged on together variable is currently 5.59% P.A. (6.0% APR) for the whole loan, where the secured LTV is up to and including 75% of the property's value, 5.69% P.A. (6.0% APR) for the whole loan, where the secured LTV is up to and including 90% of the property's value or 5.84% P.A. (6.0% APR) where the secured LTV is up to and including 95% of the property's value. Although the rate is variable the 95% loan to value product is guaranteed to be no more than 1.85% above the Bank of England Base Rate (currently 4.00%) until 1 January 2005 and then the rate is guaranteed to be below Northern Rock's Standard Variable Mortgage Base Rate for the rest of the life of the loan. The 75% loan to value product will remain below the 90% loan to value product for the life of the loan and the 90% loan to value product will remain below the 95% loan to value product for the life of the loan. Example: A capital and interest secured loan of Ł45,000 over a 25 year term completing on 1.05.2002 (300 monthly payments), secured against a property being purchased for Ł60,000. 31 monthly secured loan payments of Ł279.91 (calculated at 5.59% P.A.) followed by 269 monthly payments of Ł283.90 (rate assumed to be 5.75% P.A.). Total amount payable Ł85,484.00. A capital and interest unsecured loan of Ł18,000 over a 25 year term completing on 1.5.2002. 31 monthly payments of Ł111.51 (calculated at 5.69% P.A.), followed by 269 monthly payments of Ł113.10 (rate assumed to be 5.75% P.A.). Total amount payable Ł33,879.00. Calculated to include an arrangement fee of Ł395. Solicitors costs of Ł117.50 and valuation fee of Ł110.00. For the purpose of this example we have assumed that the applicant has not taken the Help with Costs option. Both loans will be collected as one monthly payment. APRs may vary depending on the repayment term chosen.
Applications outside normal lending criteria - if we are unable to accept your application for a mortgage on the terms shown on this section, we may still be able to offer you a mortgage on slightly less favourable terms. In such cases the Help with Costs facility will not be offered.
The above example assumes that the applicant has not taken the 'Help with Costs' option.
A written quotation on loans can be obtained on request. Only available to persons of 21 years of age or over. (18 years or over for secondary applicant in the case of joint applications).
The mortgage will be secured on your property and a suitable life policy may be required. The drawndown loan is unsecured.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
- 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.
- Norwich Union’s news releases are available on this internet site
- A selection of images is available from the CGNU Newscast site at www.newscast.co.uk
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