The UK’s largest insurer, Norwich Union is offering a new three year stepped discount mortgage with a 2% discount for the first 12 months. This latest mortgage gives an exceptional initial rate of 4.74%, with customers benefiting from no up-front costs.
The UK’s largest insurer, Norwich Union is offering a new three year stepped discount mortgage with a 2% discount for the first 12 months. This latest mortgage gives an exceptional initial rate of 4.74%, with customers benefiting from no up- front costs.
- Free valuation
- 2% discount for first year
- 1% discount for second year
- 0.5% discount for third year
- Procuration fee of 0.25% of loan
- Redemption penalty during first three years of loan
Head of mortgage development at Norwich Union, Jon Round commented “This mortgage will attract people buying their first home as it offers them an attractive series of discounts without needing to pay any up front costs.”
Additional product details:
- The maximum loan can be 95 % of the value of the property (5% deposit)
- An arrangement fee of Ł195 is required, however this can be added to the loan
- This product is offered in conjunction with Norwich and Peterborough Building Society
Customers wishing to take advantage of this offer, or gain further information on any other mortgage products can contact Norwich Union on 0845 845 1388.
Typical example NU exclusive three year Stepped Discount Mortgage Year 1 - 2% discount, Year 2 - 1% discount, Year 3 - 0.5% discount (6.9% APR).
Example: A borrower applying for a stepped discount mortgage of Ł50,000 secured over 25 years for buying a house at Ł75,000.
Assuming completion takes place on 29 June 2001, gross monthly repayments for year 1 would be Ł288 (Interest rate 4.74%), for year 2 would be Ł318 (Interest rate 5.74%), for year 3 would be Ł334 (Interest rate 6.24%), and for subsequent years Ł350 (Interest rate 6.74%). The APR for the loan would be 6.9%. The total amount repayable to the Society over 300 months would be Ł103,831, which includes the initial amount borrowed of Ł50,000, solicitor’s charge of Ł118, a mortgage application fee of Ł195 and a discharge fee of Ł55. Interest rates (including the APR), premiums, charges and fees may vary.
YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.
Mortgages are subject to status and satisfactory security. In certain circumstances a life assurance policy may be required. Mortgage loans are not available to anyone under the age of 18. Loans are secured on your home. Written quotations are available on request from the Society.
Norwich Union subscribes to the Mortgage Code – copies are available on request.
Notes to editors
- 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.
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK’s largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world’s sixth largest insurer based on gross worldwide premiums.
- CGNU’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł200 billion.
- From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- Norwich Union’s news releases are available on this internet site
- A selection of images are available from the CGNU Newscast site at www.Newscast.co.uk
Press office contacts:
Out of hours
James Evans 08703 66 68 78 07790 487105
Louise Goffee 08703 66 68 70 07747 764342