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Money Masterclass

Money Masterclass

Category: Money

Updated: 12/11/2010
First Published: 11/11/2010

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 It is now over 6 months old so the content may be out of date.

In the second instalment of the Money Masterclass, Moneyfacts.co.uk brings you the best new personal finance products.The personal finance picture is a mixed one this week, with cracking offerings from the savings, mortgages and buy-to-let markets.

As Moneyfacts.co.uk prides itself on impartial information, you can be sure that our analysis is completely unbiased and trustworthy.

Until next Thursday, this is your Money Masterclass!

Savings - Northern Rock

Product details

Northern Rock has launched a no notice postal operated account with a minimum investment of £1 paying 2.60% yearly. There is also a monthly option at 2.57 % (monthly). This rate includes a bonus of 1.50% for 12 months. One withdrawal per month is permitted and the rate is guaranteed to be no less than Base Rate until 30.6.13.

Analysis

The launch of this no notice postal operated account is a welcome addition to the variable rate savings portfolio of Northern Rock. At 2.60%, it is amongst the market leading no notice accounts not solely operated by the internet and should prove popular with investors who are happy to transact via the postal system.

Careful planning will be required as only one withdrawal is permitted per month but this should encourage investors to save. The rate guarantee until June 2013 and a competitive monthly option further add to its appeal.

Kent Reliance - Product details

The Kent Reliance 2012 Bonus Account is a 60 day notice account with a minimum investment of £500. A minimum of £10,000 would need to be invested to qualify for the monthly option paying 2.83% and 2.87% is available yearly. No earlier access is permitted. This account includes a 2.12% bonus until 30.6.12. Further additions are permitted.

Analysis

It is good to see Kent Reliance BS expand its savings portfolio with the launch of this new account. The 2012 Bonus Account pays a highly competitive rate for a 60 day notice account, sitting just below the market leader when compared against similar notice period accounts and should prove very popular.

Consumers must consider that no earlier access is permitted so all withdrawals require 60 days notice and also that when the bonus expires in June 2012 a review will be required to ensure that the account is still competitive.

Mortgages - Beverley BS

Product details

Beverley BS is offering a new discounted rate mortgage at 2.75% with a 2.00% discount for three years. The maximum loan-to-value is 75% and the product includes a fee of £995. The product is available to all types of borrowers.

Analysis

The new discounted rate mortgage from Beverley BS enters the market as the lowest rate in this sector at 75% loan-to-value. Aside from the market-leading rate, the product offers no incentives to enhance the appeal and is subject to a £995 fee.

One additional benefit is the offset option, enabling the borrower to reduce the interest charged to the mortgage. Overall, this product offers good value for money for borrowers able to provide the 25% deposit required.

Skipton BS - Product details

The Skipton mortgage is available to first time, second time and remortgage customers. The rate of 3.98% is fixed to 31.12.15 and has a maximum loan to value of 70%. The arrangement fee is £995 and the product also includes incentives of free legal fees and free valuation for remortgage customers.

Analysis

Skipton BS has enhanced its mortgage range with the launch of new variable tracker and fixed rates. The new fixed rate for five years has been priced at a competitive 3.98% at 70% loan-to-value with a £995 fee. Those looking to remortgage are likely to benefit the most from this deal, as free legal fees and a free valuation are included.

Buy to Let - Halifax

Product details

This buy-to-let mortgage from Halifax has a fixed rate of 5.49% and is available to customers who can muster at least a deposit of 25%. The arrangement fee is 2.5% of mortgage advance plus a flat rate of £245.

Analysis

Halifax has reduced rates by 0.20% across the board, giving a new three year fixed rate of 5.59% (5.39% for current account holders). This deal is now better placed within this 75% loan-to-value tier, but the fee of 2.5% + £245 is still a factor to be considered when comparing products.

The remortgage applicant continues to benefit from free valuation and legal fees and all applicants may take advantage of the maximum portfolio of up to three properties up to £2m within Lloyds Banking Group.

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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