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Money in a Minute

Money in a Minute

Category: Money

Updated: 29/11/2012
First Published: 29/11/2012

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 It is now over 6 months old so the content may be out of date.
This week's 'Money in a Minute' gives you the lowdown on the best new launches in the savings and mortgage market.

The products featured have been handpicked by the impartial research team here at Moneyfacts.co.uk, so you can be sure they are all up there with the best deals in their respective fields.

To make sure you fully understand the products, we outline the technical details behind the plans before giving you our invaluable and insightful analysis.

Savings

Progressive Building Society

  • A new three-year fixed bond has been launched by Progressive Building Society paying 2.75% yearly, which is available for investment from 1st December.
  • Savers can invest from £500, earlier access is not permitted, but further additions can be made while the issue remains open.
  • This bond is available to all customers who apply by branch or post.

This new three-year option paying 2.75% is a refreshing addition to the fixed bond market amongst the more rate reductions elsewhere. It sits in the top ten in the three-year fixed market and should prove popular to investors with smaller deposits who may not want to commit their money for a longer term.

Post Office

  • A new issue of Post Office's variable easy access premier cash ISA has been launched paying 2.25% yearly.
  • The rate includes a bonus of 0.75% for 18 months.
  • A minimum investment of £100 is required and only two withdrawals are permitted per tax year.
  • ISA transfers are accepted.
  • The ISA is available to savers aged 16 and over who apply by telephone or by post.

Post Office comes back into the easy access ISA market with a new issue of its Premier ISA paying 2.25%. The new ISA sits just shy of the top ten by rate for easy access ISAs and will prove popular to savers looking to utilise their tax-free allowance who limit their withdrawals.

Mortgages

NatWest

  • NatWest has replaced its two-year fixed deal with a lower rate of 2.28% to 31.1.15.
  • Available to all customers who borrow a minimum of £25,000 at 60% loan-to-value, the deal comes with a fee of £1,995.
  • An incentive package for remortgage customers is included with free valuation fees and free legal fees.
  • This deal also has the added flexibility of being able to make overpayments up to a maximum of 10% of the outstanding balance.

On rate alone, the 2.28% deal from NatWest is the lowest in the two-year fixed market for direct customers. Borrowers will need a 40% deposit and pay a £1,995 fee, so, along with the incentive package, the offer is ideally aimed at customers looking to remortgage.

Newcastle Building Society

  • Newcastle Building Society has reduced the rate on its two-year fixed deal to 3.39% to 31.1.15.
  • It is available to all customers who borrow a minimum of £10,000 at 80% loan-to-value.
  • The deal comes with a fee of £995, where £800 can be added to the advance, but comes with an additional 0.30% completion fee.
  • This deal also has the added flexibility of being able to make overpayments up to a maximum of £499 each month.

It's great to see a rate reduction on a high loan-to-value deal, with this offer now priced at 3.39%. This two-year option is bound to be popular to borrowers with a 20% deposit, not just because of its low rate, but also the option to add a large portion of the fee to the advance. With no incentive package customers should consider the overall cost of the mortgage before they apply.

What Next?

Find the best savings rates for you - Compare savings accounts

Find the best mortgage rate - Compare best selling mortgages

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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