N&P improves mortgage range

N&P MORTGAGES - NEW PRODUCTS & BETTER DEALS

With effect from Monday, 17th October, Norwich and Peterborough Building Society will be launching two new tracker mortgages and making a number of improvements to its existing mortgage product range available in the UK and Gibraltar.

Most of N&P’s fixed rates will be reducing by between 0.10% and 0.20%. However, some rates (eg some 2 year fixed rates and 5 year fixeds) will reduce by a greater amount.

N&P is also launching two new attractive Base Rate Tracker mortgages. The first new product is a Base Rate Tracker with a rate of BBR +0.39% (current payable rate of 4.89%) for the term of the mortgage. This is one of the lowest rated trackers for term products on the market.

The second new tracker product features a low rate (BBR -0.25%) for the first two years followed by a competitive BBR +0.85% for the remainder of the term.

NEW BASE RATE TRACKER PRODUCTS

Long-term Base Rate Tracker:

BBR +0.39% for term

Maximum 95% LTV

£599 reservation fee

No redemption charges

Minimum loan size of £75,000

Cont’d…

-2-

Low-start Base Rate Tracker:

BBR -0.25% for 2 years, followed by BBR +0.85% for term

Maximum 90% LTV

£599 reservation fee

Redemption charges of 3% in 5 years

Minimum loan size of £75,000

Choice of Fixed Rate Schemes over 2 Years

Reduced from 3.54% to 2.99% (max 90% LTV and £385 reservation fee)

Reduced from 3.98% to 3.48% (max 90% LTV, free valuation, £475 reservation fee and free Legal service or £200 cashback for purchases.)

Reduced from 4.68% to 4.54% (max 90% LTV and £699 reservation fee)

Reduced from 4.84% to 4.69% (max 90% LTV and £385 reservation fee)

Reduced from 5.24% to 5.14% (max 90% LTV, free valuation, £475 reservation fee and free Legal service or £200 cashback for remortgages and purchases).

Choice of Fixed Rate Schemes over 3 Years

Reduced from 4.24% to 3.99% (max 90% LTV and £385 reservation fee)

Reduced from 4.49% to 4.24% (max 90% LTV, free valuation, £475 reservation fee and free Legal service or £200 cashback for remortgages and purchases).

Reduced from 4.88% to 4.74% (max 90% LTV and £385 reservation fee)

Reduced from 5.24% to 5.14% (max 90% LTV, free valuation, £475 reservation fee and free Legal service or £200 cashback for remortgages and purchases).

Cont’d…

-3-

Choice of Fixed Rate Schemes over 5 Years

Reduced from 4.84% to 4.58% (max 90% LTV and £385 reservation fee)

Reduced from 4.98% to 4.78% (max 90% LTV, free valuation, £475 reservation fee and free Legal service using the Society’s nominated solicitors or £200 cashback for remortgages and purchases).

Reduced from 5.38% to 4.98% (max 95% LTV and £385 reservation fee)

Choice of Fixed Rate Schemes over 10 Years

Reduced from 4.83% to 4.78% (max 90% LTV and £399 reservation fee)

Reduce from 5.23% to 5.03% (max 95% LTV and £399 reservation fee)

MORTGAGES FOR PROPERTIES IN GIBRALTAR

Choice of 2 Year Fixed Rates

Reduced from 3.94% to 3.39% (max 90% LTV and £385 reservation fee)

Reduced from 5.44% to 4.89% (max 95% LTV and £385 reservation fee)

Reduced from 5.24% to 5.09% (max 95% LTV and £385 reservation fee)

3 Year Fixed Rate

Reduced from 4.64% to 4.39% (max 90% LTV and £385 reservation fee)

5 Year Fixed Rate

Reduced from 5.24% to 4.98% (max 90% LTV and £385 reservation fee)

Reduced from 6.78% to 6.49% (max 95% LTV and £385 reservation fee)

Main details for all above-mentioned products:

Minimum loan £1,000 - maximum negotiable

No compulsory insurances

All mortgages have flexible features - overpayments allowed from the outset; any overpayments made can be used to fund payment holidays and underpayments

Cont’d…

-4-

All portable during the fixed rate period if the customer wishes to move home

Reservation fees as shown for each product

All products carry early redemption charges unless stated. Charge varies according to product.