A new mortgage, offering a two per cent discount on a standard variable rate until 1 July 2004, is now available from Norwich Union.
A new mortgage, offering a two per cent discount on a standard variable rate until 1 July 2004, is now available from Norwich Union.
This new mortgage, offered through the Royal Bank of Scotland, gives a better choice for IFAs to select products for clients who are looking for:
- A maximum loan of 75 per cent loan to value
- A significantly lower pay rate on the first two years
The discounted deal involves limited packaging requirements for IFAs, for example employed clients do not need to supply payslips, P60s or bank statements. This means that the client only has to complete an application form, provide evidence of identity and enclose the valuation fee.
Jon Round, Norwich Union’s head of mortgage development, commented: “This new deal offers excellent value for borrowers. In view of the frenetic competition in the housing market this simplified process can make the difference between a customer getting a house or losing it.”
This product is exclusive to Norwich Union IFA Club members and Your Move estate agent’s financial consultants – for more information on this offer please contact Norwich Union on 0845 845 1388.
Press office contacts
James Evans, Norwich Union 08703 66 68 78
Out of hours 07790 487105
Louise Goffee, Norwich Union 08703 66 68 70
Out of hours 07810 057362
Ian Beggs, Norwich Union 08703 66 68 71
Out of hours 07790 487533
Notes to editors
The offer in detail:
- Discount of 2% off the standard variable rate, until 1 July 2004
- Initial pay rate of 3.95%
- Ł250 arrangement fee which can be added to the loan at completion
- Maximum 75% loan to value
- Minimum loan Ł50,000
- Procuration fee of 0.45% of loan payable between Ł50,000 and Ł75,000, 0.55% for loans over Ł75,001. Minimum Ł225 – Maximum Ł1,375
- This offer is available from 29 April 2002
- The Royal Bank of Scotland’s current standard variable rate is 5.95%
Typical example: based on a couple, both aged 25 taking a Ł70,000 capital repayment mortgage repayable over 25 years on a property valued at Ł100,000. The offer is an interest rate of 3.95% until 01 July 2004, then the Bank’s standard variable mortgage rate thereafter, currently 5.95%, APR 6.2%. There will be 24 monthly repayments of Ł367.56 and finally 276 repayments of Ł443.34. The total amount payable of Ł135,622.28. The APR includes the 300 monthly repayments, solicitors’ fees of Ł850, valuation fee of Ł200 (which includes an administration fee of Ł60), the Bank’s sealing fee of Ł75, a completion fee of Ł250, a remittance fee of Ł25 and insurance premiums of Ł10.13 per month. An early repayment charge of 2% of the amount repaid will apply if the loan is repaid or another Royal Bank of Scotland mortgage is switched to in the first two years of the mortgage. Minimum loan Ł50,000. The mortgage referred to is available up to and including 75% of the valuation or purchase price (whichever is lower) of the property. All rates correct as at 29.04.02.
- 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.
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