Norwich Union, in association with Norwich & Peterborough Building Society, has launched a new mortgage offering an exclusive 4.24% fixed rate for one year followed by a further 1% discount on the standard variable rate in year two.
Norwich Union, in association with Norwich & Peterborough Building Society, has launched a new mortgage offering an exclusive 4.24% fixed rate for one year followed by a further 1% discount on the standard variable rate in year two.
Other benefits include:
- Free valuation
- No arrangement fee
- Low redemption penalty
- No extended lock-ins
Head of Norwich Union’s mortgage development, Jon Round commented: "This mortgage rate is highly competitive and represents excellent value for borrowers. In addition to this low initial pay rate, no up front fees are required and borrowers also benefit from an additional 1% discount in the second year of the mortgage term.
"By offering a reduced fixed rate in the first year followed by a discounted variable rate, this mortgage deal delivers cost savings when it’s most required – in the first year of buying a new house - and the extra security of discounted rate in the second year."
Further information on this product and other mortgage products available from Norwich Union can be obtained by calling 0845 8451388.
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The offer in detail:
- Redemption – six months interest at the payable rate in first year then three months interest at the payable rate in the second year (no overhang)
- No mortgage indemnity premium up to 90% loan to value
- Maximum loan to value (LTV) 95%
- Procuration fee is 0.35% (minimum Ł125, maximum Ł1,000)
TYPICAL EXAMPLE: FIXED FOR ONE YEAR FOLLOWED BY 1% DISCOUNT FOR ONE YEAR
A couple both aged 25, applying for a standard variable rate mortgage of Ł85,000, secured over 25 years for the purchase of a property at Ł100,000. Assuming completion takes place on 23rd October 2001, gross monthly repayments for the fixed rate period of 12 months would be Ł465 followed by 12 monthly discounted payments of Ł508, followed by 276 monthly repayments of Ł559 for the remaining term of the mortgage (based on our current standard variable rate). This illustration has been prepared on the assumption that the interest rate(s) applicable at the start of the mortgage term will not continue throughout and the Society’s standard variable rate will be applied after the period during which the special interest rate applies.
This is based on an interest rate of 4.24%.
The APR for the whole loan would be 6.1% variable.
The total amount repayable to the Society by monthly payments would be Ł166,111. This includes:
Initial amount borrowed Ł85,000
Solicitor’s charge Ł149
Discharge fee Ł55
Interest rates (including the APR), premiums, charges and fees may vary. The APR and payments set out in this example would, of course, be different if the interest rate were to change.
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 any branch of the Society.
Norwich and Peterborough Building Society represents only the Norwich Union Marketing Group, members of which are regulated by the Personal Investment Authority and/or IMRO, for life assurance, pensions and investments. Any financial advice given on life assurance, pensions and investments will relate only to the products of Norwich Union or Norwich and Peterborough Building Society.
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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Press office contacts:
James Evans, Norwich Union 08703 66 68 78
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