Norwich Union launches exclusive 100% LTV mortgage* with a 3 year discount and no early repayment fee.
18 December, 2000
Norwich Union is offering IFAs access to an exclusive 100% LTV mortgage* with a 3 year discount and no early repayment fee.
This offer is being made in response to a gap in the market for clients needing a 100% mortgage, who have until now had very little choice available. The most popular choices have been either a low initial rate with extended early repayment fee or a longer term fixed rate with high repayment level.
The mortgage is offered in association with The Royal Bank of Scotland and is available to clients looking for the flexibility of a generous discount of 1.30% for 3 years and the additional benefit of no early repayment fees. Legal and valuation fees can also be added to the loan to a maximum of Ł1,000.**
Jon Round, Head of Mortgage Development for Norwich Union, commented: "This product will enable IFAs to target clients looking for a 100% mortgage with no early repayment fees. This new offer clearly demonstrates our commitment to the IFA market and to providing market leading mortgage solutions."
IFAs will benefit from procuration fees of 0.45% for loans up to Ł75,000 and 0.55% for loans up to a maximum of Ł150,000 on completion of the mortgage application.
Information on this product or any others from Norwich Union is available to IFAs by calling 0845 845 1388.
* 100% mortgage available for loans between
Ł25,000
and Ł150,000
** 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, Scotland, Wales and Northern Ireland
- Interest rate set at 1.30% discount relating to The Royal Bank of Scotland's 100% Variable Mortgage Rate until 1st February 2004 (initial rate currently 6.94%, APR 7.73%). Thereafter it converts back to The Royal Bank of Scotland Standard Variable Rate usually applicable to mortgages less that 100% (equivalent to 0.5% discount on the Bank's 100% Variable rate).
- 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.
- Maximum loan - Ł150,000 Minimum loan - Ł25,000
- Mortgage Indemnity Premium: (can be added to loan)
| % loan to Valuation/Purchase Price | Rates |
| 75.01% to 90% | No charge |
| 90.01% to 95% | 8.95% |
| 95.01% to 100% | 12.0% |
- 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: none
- This product is portable.
***Typical example 6.94%***
The APR of 7.73% is based on the following assumptions: capital repayment mortgage on a property valued at Ł50,000 repaid over 25 years. 24 x gross monthly repayments of Ł 292.00 assuming a rate of 4.99%, followed by 276 monthly payments of Ł357.00 assuming the rate reverts to the current standard variable rate of 7.74%.
In this example, the total amount payable would be Ł109,839.00. This includes Ł59,893.00 total gross interest payable, Ł600 legal fees, Ł160 valuation fee, Ł1,500 higher lending fee and Ł75 sealing/deeds release fee. A completion of 1st January is assumed.
The property upon which the loan is required to be secured must be insured for the cost of 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.
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 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 pension company (based on 2000 new premium income).
Press office contacts:
Ian Frater - 01904 452791
Louisa Steel - 01904 452083
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