Norwich Union is to raise the interest rates on its index-linked lifetime mortgage plans. The annual interest rates on the plan will be a minimum of 4.69% from 4.39%, and a maximum of 9.93%, up from 9.61%.
Cases that are already being dealt with had until July 14th to complete, to be able to qualify for the previous rate, after which they will be subject to the new interest rates.
If you missed the date, you have missed the rate.
Our view
We believe this is based upon their expectations that interest rates are about to rise.