News

There was some good news for first-time buyers this week as we reported that the number of first-time buyer deals has almost doubled month on month. First-time buyers looking for a deal will note the lower rates entering the first-time buyer charts this week. As well as this, homeowners looking to move home or remortgage will find that rates in both these charts still remain highly competitive.

We have highlighted the lowest rates in the remortgage, moving home and first-time buyer charts, but borrowers should note that the lowest rate may not be the best option for their individual circumstances. Instead, when looking at mortgage deals, borrowers should consider a range of factors including product fees, incentives and flexible features, along with the rate, to determine the best one. Borrowers unsure of which deal is the best option for them, should consider speaking to a mortgage broker who will be able to provide help and advice in choosing the best option.

Santander has announced today that it plans to cut the interest rate on its 123, Select and Private Current Accounts from their current rates of 0.60% to 0.30%, which would mean customers depositing the maximum £20,000 would lose £60 per year in interest.

The interest rates on both these accounts are set to be cut on 12 April 2021. Santander has also revealed that it will be lowering the monthly fee on these accounts from their current amount of £5 per month to £4, which will save customers £12 over a 12-month period.

Explaining why Santander has decided to make these rate cuts, Susan Allen, CEO, Retail and Business Banking at Santander, said: “With the Bank of England base rate remaining at its lowest level on record, and significant recent reductions in interest rates on current and savings accounts across the industry, we have taken the difficult decision to reduce the interest rate on our 1I2I3, Select and Private Current Accounts. However, by lowering the monthly fee, we’ve ensured the accounts continue to provide customers with long term, everyday value, and Santander remains the only bank to offer both in-credit interest and cashback on household bills.”

Although locking into a new mortgage deal can reduce monthly repayments, especially if the borrower is currently on the lender’s standard variable rate (SVR), it can result in having to pay additional costs. Mortgage borrowers looking to reduce the cost of locking into a new mortgage deal may want to consider a mortgage that does not charge a product fee, which on some deals, can add over £1,000 to the mortgage.

To help borrowers find the best mortgage deal that does not charge a product fee, below we’ve highlighted the lowest rates available on two and five year fixed deals that do not have any product fees in our remortgage, moving home and first-time buyer charts.

Although the interest rate is important when considering a mortgage deal, borrowers should be aware that the lowest rate available may not be the right option for their needs and, as such, should consider speaking to a mortgage broker to find the best deal of their individual circumstances.

There was little change at the top of the ISA charts this week, with many of last week’s top rates still available in the charts. With the continued economic uncertainty, it is unlikely that ISA rates will see significant improvement over the next few weeks, but ISA savers should regularly check the charts in case a new top rate is launched.

Savers should be aware that the rates below are the best rates available at 1pm on Thursday 14 January 2021 and, although correct at the time of publishing, they may not be available after this time.