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Money Masterclass

Money Masterclass

Category: Money

Updated: 26/11/2010
First Published: 26/11/2010

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 It is now over 6 months old so the content may be out of date.

Welcome to your weekly run down of the best new savings accounts and mortgages on the personal finance market.

The Moneyfacts.co.uk Money Masterclass showcases the products that have caught our eye, and offers thorough product details and unbiased analysis that you can trust.

This week, we've got a couple of cracking savings accounts and two mortgages; one's a tracker and the other's a fixed so there's something for everyone.

Until next week, this is your Money Masterclass.

Savings

Northern Rock

Product details:

Northern Rock's latest Fixed Rate Cash ISA for one year pays a competitive rate of 3.05%. A minimum deposit of £500 is required and additions can be made up to 30 days after the issue closes. Upon maturity, the rate converts to the 30 Day Cash ISA, which allows free access to funds for up to 30 days. Early access is allowed, although this is subject to 60 days loss of interest. Transfers in are accepted. The account is available to savers aged 16 and over and can be operated by post only.

Analysis:

Northern Rock has reviewed its range of fixed rate cash ISAs, with rates having increased by up to 0.30%. The one year fixed deal has asserted its position as a market leader in the short term market, with a new rate of 3.05%. Savers can only operate the account by post, however.

Skipton Building Society

Product details:

Skipton Building Society has reviewed its regular savings account range, with a highly competitive new one year deal paying 5.00%. The account, available to savers of all ages, requires investments between £10 and £500, although contributions can be amended. The account will transfer to the Instant Access account upon maturity. Twelve payments are required in a year and funds can be accessed on account closure only. The account can be operated in branch or by post.

Analysis:

Paying a variable rate of 5.00%, this product is best suited to savers who can commit to locking funds away and make fixed deposits of between £10 and £500 each month. As with many regular savings accounts, funds cannot be accessed during the term of the account, although earlier access is allowed on closure only.

Mortgages

ING Direct (UK)

Product details:

The new two year tracker mortgage from ING Direct (UK) offers a competitive rate of 2.44% (BBR + 1.94%). The deal has a maximum loan-to-value of 75%, a fee of £945 and offers remortgage customers incentives of free valuation and legal fees. There is also the option to make overpayments of up to 10% of the mortgage advance.

Analysis:

Newly priced at 2.44% with a £945 fee, this new two year tracker from ING Direct should certainly prove popular with customers who are able to provide a deposit of 25% or more. Incentives of free valuation and legal fees should also appeal to customers looking for a good remortgage deal.

The Co-operative Bank

Product details:

The Co-operative Bank has reduced its two year fixed deal by 0.40% down to 5.69% to 28.2.13. Available to first and second time buyers with a deposit of 10% or more, this deal has no fee and offers a host of flexible features including overpayments, underpayments and payment holidays.

Analysis:

This latest update from The Co-operative Bank has seen a variety of fixed rates re-priced. The two year fixed deal for house purchases certainly stands out as the best with a reduction of 0.40% to 5.69%. The product has no fee and offers borrowers good value for money with a 90% loan-to-value. Flexible features such as the option to make overpayments (up to 10% of the outstanding balance), underpayments and payment holidays should further enhance this product's appeal.

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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