Norton Update

The recently announced lending criteria and web document changes has allowed Norton Home Loans (NHL) to restructure:

1. The “Early Repayment Charges” (ERC’s) on to a sliding scale.
2. Revise the “Additional Charges” prior to the completion of the loan term.
3. Revise the “Additional Charges when loan term completes and the mortgage is fully repaid **.

These changes deliver a structure where there are no longer any differences between 1st & 2nd Charge Mortgage Products. 

The changes to Early Repayment Charges are effective from Tuesday 12^th October 2021.

1^st Charge Mortgages – Sliding Scale

5 Year Fixed Rate Products:

• Year 1 = 3% of current outstanding balance.
• Year 2 = 3% of current outstanding balance.
• Year 3 = 2% of current outstanding balance.
• Year 4 = 2 % of current outstanding balance.
• Year 5 = 1 % of current outstanding balance.
  
  
• Year 6 and onwards = 1 Month’s Variable Interest. 

2 Year Fixed Rate Products:

• Year 1 = 3% of current outstanding balance.
• Year 2 = 2% of current outstanding balance.
  
  
• Year 3 and onwards = 1 Month’s Variable Interest. 

Variable Rate Products:

• Remain unchanged = 1 Month’s Interest.

Important ESIS Note 1^st Charge Mortgages Only:

If the binding offer has not been issued by midnight on Monday 11^th October a new ESIS containing the new “Early Repayment Charges” will be regenerated on the web document site. Packagers will need to generate a revised ESIS from the web document site. This new ESIS will need to be discussed with your client and importantly the fact find amended. NHL will then discuss this change with your client at “speakwiths”.

2^nd Charge Mortgages – Sliding Scale

5 Year Fixed Rate Products:

• Year 1 = 3% of current outstanding balance.
• Year 2 = 3% of current outstanding balance.
• Year 3 = 2% of current outstanding balance.
• Year 4 = 2 % of current outstanding balance.
• Year 5 = 1 % of current outstanding balance.
  
  
• Year 6 and onwards = 1 Month’s Variable Interest 

3 Year Fixed Rate Products:

• Year 1 = 3% of current outstanding balance.
• Year 2 = 2% of current outstanding balance.
• Year 3 = 1% of current outstanding balance.
  
  
• Year 4 and onwards = 1 Month’s Variable Interest.                                             

1 Year Fixed Rate Product:

• Throughout the loan term = 1 Month’s Variable Interest.

Variable Rate Products:

• Remain unchanged = 1 Month’s Interest.

Important ESIS Note 2^nd Charge Mortgages Only:

Unlike 1^st Charge Mortgages where an ESIS has been issued prior to the 12^th October, Packagers will not be required to regenerate a revised ESIS from the NHL web document site. No further action is required.

Additional Redemption Charges on all 1^st & 2^nd Charge Mortgages:

Property in England & Wales.

• Redemption Administration Fee – £125. (Not paid if mortgage term completed see 3 above **).
• Security Release Fee – £75.

Property in Scotland

• Scottish Solicitors Fee – £220 (This includes Security Release Fee).
• Redemption Administration Fee – £125. (Not paid if mortgage term completed see 3 above **).