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Money Masterclass: savings & mortgages

Money Masterclass: savings & mortgages

Category: Money

Updated: 18/11/2010
First Published: 18/11/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Money Masterclass showcases the best of the latest products to hit the consumer finance market.

This week, we highlight the finest new savings accounts and mortgages.


Leeds bs

Product details

Leeds BS has launched a fixed term postal operated account maturing on 31.3.11. Savers can invest a minimum of £1,000 and a maximum of £1m, paying 2.50% on maturity.
The account has unlimited penalty free access and additions can be made whilst the issue remains open.
This account is available to all ages and can be operated only by post. analysis

It is good to see Leeds BS re-launch the popular short term fixed postal operated bond. At 2.50%, it pays a market leading rate for a six month bond and should do well with clients who prefer to transact via the post. The bond does have the added flexibility of unlimited withdrawals during the term which is a definite plus in these uncertain times.

Bank of Cyprus UK

Product details

The Bank of Cyprus UK is offering a two year cash ISA bond paying 3.30% yearly with a minimum investment of £1. Early access is permitted on closure only and will be subject to 180 days loss of interest.
Transfers out will also result in 180 days loss of interest.
Further additions are allowed.
There is also a three year cash ISA option available paying a higher rate of 3.90% yearly.
The criteria for the two year product applies to the three year ISA. analysis

This latest review by Bank of Cyprus UK on its fixed term ISAs sees reductions to the 2 and 3 year terms. However, even with the reductions, the three year offering paying 3.90% remains a market leader and the 2 year paying 3.30% is still equal to the top rate, when compared against similar term products. Clients looking to invest for the medium term should find these new issues hard to beat, either for this year's tax allowance or for those looking to transfer previous years' subscriptions.


Leeds bs

Product details

Leeds Building Society has launched new fixed rate mortgages, available to direct business only. A rate of 4.09% to 31.1.16 is being offered and is available up to a maximum of 75% loan-to-value.
A competitive fee of £199 is payable and the product includes incentives of a free valuation up to the maximum of £335 and free legal fees are available for remortgaging customers.
The only requirement for this best buy deal is that the building and contents insurance is taken out with the lender, otherwise a 0.24% loading applies to the initial rate. analysis

The new five year fixed rate mortgage is a highly competitive deal. Priced at 4.09% at 75% loan-to-value it enters the Moneyfacts 'Best Buys'. A low fee of £199 and incentives of free valuation (maximum £335) and for remortgages free legal fees help to keep set up costs to a minimum. This deal is likely to be extremely popular; however, in order to be eligible for this rate, the lender's buildings and contents insurance must be taken out.

Norwich and Peterborough BS

Product details

Norwich and Peterborough Building Society is offering borrowers a new fixed rate mortgage of 4.15% for two years, which is available up to a maximum of 85% loan to value. A reasonable fee of £995 is payable. analysis

Norwich and Peterborough BS has added the two year product to its current range of three and five year fixed rates. Despite the rate of 4.15% being some 0.21% higher than the best rate at 85% loan-to-value, this product still sits at the top end of this sector. The fee of £995 is comparable to the fees on its competitor's products; however there are no incentives on offer to entice the borrower.


Yorkshire Bank

Product details

This buy-to-let mortgage from Yorkshire Bank is a new variable rate product and has a managed rate of 4.99% for term up to a maximum of 80% loan to value. A competitive flat fee of £999 is payable and the mortgage has a flexible offset option. analysis

The variable rate for term is priced at 4.99% and has a low flat fee of £999 and no redemption penalty and flexible offset option. Although not the lowest rate available, no similar deals are currently on offer at this high loan-to-value, making this an attractive proposition.

Find the best mortgage rate - Compare best selling mortgages

Find the best savings rates for you - Compare savings accounts

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.