The fixed interest rate for lifetime mortgages introduced by intermediaries will be 6.68 per cent. The overall cost for comparison is 7.1 per cent APR.
The fixed interest rate offered by the Norwich Union Personal Finance financial consultants will be 6.87 per cent. The overall cost for comparison is 7.3 per cent APR.
NU applies interest on an annual basis and the yearly cost of the loan is shown as the APR.
NU personal finance direcor Mark Kelly says:
“The cost to Norwich Union of raising funds has come down and we are pleased to be able to pass this benefit directly on to consumers by cutting our fixed rate of interest for the second time in 2005, making our new
rates the lowest ever offered by Norwich Union.”