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Norwich Union has launched a new self-certification mortgageoffering a 1.2 % discount through The Mortgage Business. Thediscount runs until 1 October 2002 and is available to bothsalaried and self employed applicants who want to borrow up to 85 %Loan To Value ( LTV).

• Discount of 1.2 % - initial rate of 5.79 %
• Self-certification of income (no need for accounts / wageslips)
• Minimum loan size of £25,001
• Minimum valuation of £35,000
• Application fee of £299
• Redemption penalty during first three years of loan
• Procuration fee of 0.50 % of loan

Norwich Union's head of mortgage development Jon Roundcommented: "By building a strong working relationship with TheMortgage Business over a number of years, we are delighted to offerone of the lowest self-certification discounted rates available.Not having the customary three years of accounts should no longerbe a barrier to getting a new mortgage. We believe that theself-employed market is still an area of huge potential and so byoffering IFAs such a competitive product, we hope to help them growthis area of their business."

IFAs who wish to take advantage of this offer can contactNorwich Union on 0845 845 1388 for further details.

-Ends-

Product in more detail:

• Early Redemption Penalty is 3/2/1 months interest in first 3years and one months notice or interest in lieu of noticethereafter
• This product is offered in conjunction with The MortgageBusiness plc, who are a Bank of Scotland Group company
• Available for purchase or remortgage

Typical example:

For example, a £50,000 mortgage over 25 years taken out in June2001 would initially require 15 interest only monthly payments of£241.25, calculated at the discounted rate of 5.79%. From the endof the discounted rate period, the standard rate would prevail forthe remaining term of the mortgage. At the current standard rate of6.99%, the remaining interest only monthly payments would be 285 of£291.25, followed by one capital repayment of £50,000. The totalamount payable would be £137,339 and the overall APR for theagreement would be 7.2%.

The total amount payable includes £190 valuation fee and £225legal fee payable in advance, and £299 completion fee payable withthe final mortgage repayment. Early redemption of the mortgage willresult in the addition of 3,2,1 months' gross interest in the firstthree years and one months notice or interest in lieu of noticethereafter.

YOUR HOME IS AT RISK IF YOU DO NOT KEEPUP
REPAYMENTS ON A MORTGAGE OR OTHER LOAN
SECURED ON IT.

Your property - and for certain types of loan - asuitable life assurance policy will be required as security for themortgage. For some mortgages a mortgage guarantee premium may alsobe required. Full written details including a quotation areavailable on request. All loans are subject to your status, and thetype and value of the property. Loans are not available for personsunder 18 years of age.

WE SUBSCRIBE TO THE MORTGAGE CODE - COPIES AREAVAILABLE ON REQUEST.

Notes to editors

1. IFAs can benefit from the buying power of one of the largestmortgage intermediaries in the UK, through enhanced mortgageproducts, enhanced procuration fees - with dedicated service andsupport.

• CGU plc and Norwich Union plc merged on 30 May 2000 to createCGNU plc, the UK's largest insurance group and one of the top-fiveinsurers in Europe with substantial positions in other marketsaround the world, making it the world's sixth largest insurerbased on gross worldwide premiums.
• CGNU's principal business activities are long-term savings,fund management and general insurance, with worldwide premiumincome and retail investment sales from ongoing business of over£27 billion and assets under management of more than £210billion.
• From October 2000, the combined life and pensions, generalinsurance and retail fund management businesses in the UK operateunder the Norwich Union brand, while the institutional investmentbusiness operates under the Morley Fund Management brand.
• Norwich Union's news releases are available on thiswebsite