News

UK: Norwich Union increases equity release interest rates

06 July, 2004

Norwich Union is increasing the fixed interest rates on its Fixed Rate Lifetime Mortgage by 0.20%. The interest rate will increase to 7.19% for business introduced through IFAs and to 7.49% for direct business. The new rates will be effective on loans completed on and after 2 August 2004.

The Fixed Rate Lifetime Mortgage is a mortgage-based equity release product.

Mark Kelly, Director of Norwich Union Personal Finance, said: "Equity release plans provide a solution for many older home owners who have no other way of generating a cash lump sum and want to stay in their own home. In recent weeks we have seen long-term interest rates move upward and therefore the cost to Norwich Union of raising funds has increased. These rate increases reflect the increase in funding costs. Existing customers whose loans have already completed or who will complete before 2 August 2004 are unaffected by this change."

Press office contact:

David Gwyer 01904 452828 07800 699508

James Evans 01904 452791 07790 487105

Notes for editors:

Minimum property values apply. Norwich Union Equity Release is a lifetime mortgage secured on your home. CHECK THAT THIS MORTGAGE WILL MEET YOUR NEEDS IF YOU WANT TO MOVE OR SELL YOUR HOME OR YOU WANT YOUR FAMILY TO INHERIT IT. IF YOU ARE IN DOUBT, SEEK INDEPENDENT ADVICE. A personal illustration and full written terms and conditions are available on request. Norwich Union Equity Release Limited No. 3286484. Registered at 2 Rougier Street, York YO90 1UU. Not available in Northern Ireland, the Channel Islands and the Isle of Man. This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business. Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.