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Article: 90% On red alert as NU axes amber.(Norwich Union PLC)(Brief article)
- Article from:
- Money Marketing
- Article date:
- January 18, 2007
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IFA criticises 'ridiculous move which will scare public'
Nearly nine out of 10 of Norwich Union's mortgage endowment policyholders will get red warning letters after the firm decided to scrap amber.
The company says 89.5 per cent of its mortgage endowments carry a high risk that they will not pay off the loan compared with 72 per cent in the previous year.
The increase is due to NU's decision to recategorise amber letters, carrying a significant risk of the shortfall, to high-risk red letters.
Last year's figures showed 72 per cent of endowments in the red zone, 21 per cent in the amber sector and 7 per cent green.
NU ...