Equity Release

The table below shows the current interest rates and APRs for our three different types of Lifetime Mortgage. The actual rate available will depend on your individual circumstances and will be shown on your personalised illustration.

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration. These rates are correct as at 30/09/2008.

What is an APR?

APR stands for Annual Percentage Rate. You can use this to compare the cost of different lifetime mortgages from different lenders. The APR is worked out using a common formula that all lenders use. It takes into account not just the interest rate but all the costs and charges you'll have to pay, such as arrangement fees and valuation fees. This gives you a simple figure that allows you to compare the overall costs of different lifetime mortgages more easily.

When do the interest rates apply?

The interest rate current at the date we receive your valid application is guaranteed for 14 weeks. If you complete within this period, the rate is then fixed for the lifetime of the mortgage.

If you don't complete within this period, the interest rate that applies to your lifetime mortgage will be the rate that's current on the day of completion. This rate could be higher or lower than the one that was current on the day of your application. If you want to guarantee the interest rate for a further 14 weeks, you'll be charged an up-front re-booking fee.

You'll also have to pay a re-booking fee if you cancel your application and then re-apply within 6 months of your original application. You'll find further details on your Tariff of Charges.

We'll tell you if the completion of your loan takes longer than 14 weeks and the interest rates have gone up, so you'll be able to review your application and decide whether you want to go ahead. If you choose not to proceed, any fees you've paid won't be refunded.

With the Lifestyle Flexible Option, the interest rate we apply to each release from your cash reserve will be the rate current on the day you request an additional release and is guaranteed for 14 days. If you don't complete within the period, the rate that applies to your additional release will be the rate that's current on the day we issue the money. This could be higher or lower than the rate that was current on the day of your application.

Things to think about

• The loan and interest are repaid by the sale of your property when you die or go into long-term care.

• As there are no monthly repayments, interest builds up through the life of the mortgage and is charged on the total of the amount borrowed and the interest already added. This quickly increases what you owe.

• With a lifetime mortgage the value you have in your property will be reduced, possibly to nothing, and therefore so will the amount of any inheritance you leave.

• Your tax and welfare benefits may be affected.

Your next steps

We'll guide you through all the information you need to make your decision and how to apply for a lifetime mortgage.
Any advice given will relate only to the products sold or marketed by Norwich Union.

Call us on 0800 404 6220* to book an appointment

* Lines are open Monday to Friday 8am - 8pm, Saturday 9am - 5pm and Sunday 10am - 4pm. Calls may be recorded and/or monitored.

Norwich Union Equity Release Limited. Registered in England No 3286484. Registered office 2 Rougier Street York YO90 1UU. Authorised and regulated by the Financial Services Authority.

WC07053 10/2008