News

After a slow 2020, the savings market is moving again with new rates appearing almost on a daily basis this week. While new top rates have been entering the charts, many have reached their maximum deposits within a short time and, as a result, are being withdrawn by providers from the market within days. For example, on Tuesday, Skipton Building Society increased the rate on its easy access savings account, resulting in it paying a chart-topping rate of 1.20%, but this was withdrawn yesterday having already reached its maximum deposits.

As saving rates are changing on a daily basis, although all rates below were accurate at the time of publishing, savers would be recommended to check our savings charts regularly to see what rates are currently available.

National Savings and Investments (NS&I) has announced plans to phase out its paper prize cheques to Premium Bond winners from December 2020 in a move that will eventually see all prize payments made directly into winner’s bank accounts.

The phasing out of paper prize cheques will last until March 2021and according to NS&I, this switch will result in “a quicker, easier and more secure way for customers to receive prizes”.
Since 2011, Premium Bond customers could choose to have prizes paid directly into their bank accounts and in the September 2020 draw 74% of winners had their prizes paid into their accounts rather than opting for a postal cheque.

ISA savers looking for a short-term fixed rate ISA will be pleased to see new higher rates topping the one and two year fixed rate ISA charts this week. In addition to this, competition towards the top of the easy access ISA chart has improved this week, with more providers offering the third top rate of 0.90%.

It should be noted that the rates below are the best rates available at 12pm on Thursday 17 September 2020 and, although correct at the time of publishing, they may not be available after this time.

Over the past four years the average equity release has fallen by 1.14% so that it is now on average cheaper to take out an equity release than it was in 2016. While this is good news for those currently considering releasing equity from their home, for those who took out an equity release plan some years ago it may be disappointing reading. Fortunately, there is the possibility of remortgaging equity release, which could result in a lower, cheaper rate. Below we take a look at whether now is a good time to remortgage your equity release.

Since 2016 the average equity release rate has fallen from 5.35% to stand at 4.21% today. As the below table shows, average equity release rates have been falling consistently year-on-year over the past four years. In addition to this, as we reported earlier this week, research from Key Partnership found that competition within the equity release market is increasing and this year has seen a new equity release product being launched every 28 hours.

The fall in rates combined with the increase in equity release competition means that those looking to remortgage equity release now are likely to get a better deal than if they did so just a few years ago. This could also mean that, depending on the rate of their initial equity release, they could be able to get a remortgage equity release deal that results in paying a lower rate. Additionally, with new products entering the market offering enhanced product features, those with an equity release could find that there are now more options that suit their personal circumstances than when they initially took out equity release.

Saying this, there are many factors to consider, and costs to be included, when looking to remortgage an equity release. For example, those with an equity release deal could find that they have to pay a significant amount of money to exit their existing deal and remortgage with a new equity release – the cost of this could outweigh the lower rates being offered on the new equity release deal.

Despite the numerous benefits equity release can offer it is important that independent financial advice is sought to ensure the costs and implications are understood fully. In addition to this, speaking to an equity release adviser may be a good option to help those looking to remortgage equity release to find the right deal for their circumstances.