The annual interest rates on the index-linked lifetime mortgage will be a minimum of 4.69 per cent (4.9 per cent APR) and maximum of 9.93 per cent (10.2 per cent APR). Pipeline cases will be given until Friday 14 July 2006 to complete to qualify for the previous rate after which they will be subject to the new interest rates.
Daren Carter, director of sales and marketing at Norwich Union Personal Finance, said: “We are the market leader in the lifetime mortgage market and aim to keep our pricing as competetive as possible. Long-term interest rates have risen and we have had to increase our rates. Despite this increase the new minimum and maximum interest rates are still lower than those at the start of the year.”
