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Money in a Minute

Money in a Minute

Category: Money

Updated: 27/04/2012
First Published: 27/04/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Welcome to the Money Masterclass, your one-stop-shop for the best new personal finance products on the market.

This week we look at two new savings accounts from AA and Scottish Building Society, and two new mortgages from HSBC and Britannia.

As usual, products are broken up into technical details and impartial product analysis, so you can be sure the information is 100% reliable.

Mortgages

HSBC

Product details
HSBC has reviewed its mortgage range with the variable tracker mortgage now with a rate of 2.79% for term. The maximum loan-to-value is 60% and is available to all customers. The deal has a range of incentives which include free valuation fees for purchase customers and free legal fees for remortgage customers. No application fee is required.

Moneyfacts.co.uk analysis
Launching a fee-free variable tracker for term, on the rate of 2.79% alone the deal sits comfortably within the top ten mortgages within this sector at 60% loan-to-value. As well as a low rate, the deal boasts a fee-free incentive package, which will be good news to prospective buyers looking to keep initial mortgage costs down.

Britannia

Product details
Britannia has re-priced its mortgage range, with one of the most attractive offerings being the five-year fixed rate deal at 4.29% to 31.8.17. Available to all borrower types with deposits of 15% or more, this deal has a generous incentive package for those remortgaging, including free legal fees and free valuation fees. No application fee is required, regardless of the borrower type.

Moneyfacts.co.uk analysis
At 4.29%, this five-year fixed deal launches straight into the top ten lowest rates at 85% loan-to-value. In addition, the deal comes with a cost saving incentive package including free legal fees and free valuation fees for those remortgaging and no application fees for any prospective borrowers. It is likely to prove a popular choice amongst those who want a long-term fixed deal but also to limit initial mortgage costs.

Savings

AA

Product details
This latest fixed range review by the AA sees the launch of a five-year fixed bond paying 4.40% on maturity. Investments range between £1 and £5 million. Early access is allowed but will be subject to an interest penalty determined on the year of withdrawal, ranging from 90 days to 365 days. Further additions are permitted whilst the issue remains open. The account can be operated by post by investors aged 16 and over.

Moneyfacts.co.uk analysis
Straight away this five-year fixed bond from AA paying 4.40% on maturity enters the top five best paying rates over this period. Earlier access is allowed, which should prove popular, however, this is subject to an interest penalty, determined by the remaining term of the investment. Needless to say, to get the full benefit of the rate investors would need to tie in their investment for the duration of the term.

Scottish Building Society

Product details
Following a recent fixed review, Scottish Building Society has launched a two-year fixed bond paying 3.85% on maturity. Savers can invest between £1,000 and £500,000. Early access and further additions are not permitted. The account can be operated by post or branch.

Moneyfacts.co.uk analysis
Immediately entering the top three highest rates in the short-year term sector, this two-year fixed rate bond offers a decent rate of 3.85% on maturity. It sits as the highest rate over two-years. As with the majority of fixed-rate investments, savers must be willing to lock in their investment as early access is not permitted.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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