Money Masterclass - Money - News - Moneyfacts

News

Money Masterclass

Money Masterclass

Category: Money

Updated: 22/09/2011
First Published: 17/02/2011

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 It is now over 6 months old so the content may be out of date.

Today's Money Masterclass showcases the best new launches in the savings and mortgage markets.

The products have been pinpointed by our renowned and impartial research team, so you can be sure that they sit at the top of the respective classes.

To make the products easier to understand, technical details and first class analysis have been provided, to help you work out if it's the right deal for you.

Savings

Post Office

  • Post Office has relaunched its Online Bonds for one, two and three year terms.
  • The new Online Issue 3 deals pay 3.00%, 3.65% and 4.00% respectively.
  • All deals require investments between £500 and £2m, and further additions are not permitted. Early access is allowed on closure, subject to 90 days' loss of interest for the one year bond and 180 days for the two and three year deals.
  • All accounts are available to savers aged 18 and over and, as the name suggests, can be operated online only.

Moneyfacts analysis

The Post Office has expanded its range of fixed rate bonds with new deals for two and three years. Investors who close the account and access funds early will incur an interest penalty but this does provide some flexibility. All bonds fall within the top ten rates for their respective terms.

Halifax

  • Halifax has increased its two and three year Fixed Rate ISA Saver accounts.
  • Most notable is its two year fixed ISA rate of 3.50%, increased by 0.65%.
  • Savers can invest a minimum deposit of £500 although further additions are not allowed.
  • Early access is permitted on account closure, although this is subject to 180 days loss of interest.
  • Transfers in are accepted.
  • The bond is available to savers aged 16 and over and can be operated in branch, by telephone or online.

Moneyfacts analysis

A rate increase of 0.65% sees the Fixed Rate ISA Saver for two years sitting amongst the other market leaders. As with many fixed rate bonds, investors must be willing to lock their money away for the duration of the term. Those who choose to access funds early, upon account closure, will incur a penalty of 180 days' loss of interest.

Find the best savings rates for you - Compare savings accounts

Mortgages

Principality Building Society

  • Principality Building Society has reduced the rate on its variable tracker mortgage by 0.20% to 3.89% to 31.3.13.
  • Offering borrowers a maximum loan-to-value of 85%, this deal also has a reasonably low arrangement fee of £999.
  • Borrowing advances range from £5,000 to £250,000.
  • No incentives are offered, although flexible features such as overpayments, underpayments and payment holidays are available.

Moneyfacts analysis

Borrowers looking for a variable mortgage will be pleased with this deal's rate of 3.89% and reasonable fee of £999. Customers looking at variable rate mortgages should bear in mind that their monthly repayments will increase in the event of an interest rate rise.

Santander

  • Santander has launched its latest two year mortgage at 5.45% to 2.4.13.
  • The maximum loan-to-value is 90% and customers can borrow between £6,000 and £250,000.
  • A fee of £99 is payable.
  • Incentives of a free valuation and a £250 rebate upon completion are also offered.

Moneyfacts analysis

This new two year deal from Santander offers customers a competitive rate of 5.45%. Borrowers with a small deposit, including first-time buyers will be pleased with the maximum loan-to-value of 90%. The deal also offers a range of incentives and the option to make overpayments of up to 10% of the outstanding balance.

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.

Related Articles

New Year tips to improve children’s money skills

How many have better budgeting as their New Year’s resolution? As with many things, these skills are best learned when young, so Lemonade Money has come up with some tips to help parents make their children more financially savvy.

Money worries lead to Christmas on credit

Money worries are putting Christmas at risk for up to five million Brits, with 10% saying they regularly worry about money in the lead up to Christmas, and the same proportion feeling stressed about how much they are spending.

Would you spend more for a character property?

We all have our own ideas of what makes a dream home, and for many, character features are at the top of the list. But how much more would you be willing to pay for those kinds of additions – and could they even help you save money in the future?
 
Close