Moneyfacts Weekly Product News – 02.07.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 02/07/2020

The Moneyfacts Weekly Product News is a round-up of the latest products or rate changes to hit the consumer finance market this week. The deals are available right now, but may be subject to change. Find the best product for you.

Savings

Metro Bank – 1 Year Fixed Rate Cash ISA (Issue 20)

This week, Metro Bank has reduced rates on its fixed rate ISAs by up to 0.25%. Receiving a slightly smaller cut of 0.20%, the 1 Year Fixed Rate Cash ISA now pays 0.70% and can be opened with deposits of as little as £1. Further additions are permitted within the first 30 days after account opening, and earlier access is permitted, however this is only considered on closure and is subject to a loss of interest penalty. Savers may find this deal an attractive choice as, despite the rate reduction, this maintains a position in the top rate tables. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.70% gross / 0.70% AER, payable yearly
• Notice / term: One year
• Minimum opening amount: £1
• Maximum investment amount: ISA allowance
• Access: Permitted on closure subject to a 180-day loss of interest penalty
• Further additions: Permitted within 30 days of account opening
• Transfers in: Accepts cash and stocks and shares ISAs
• Opening account: In branch
• Managing account: Online, by phone and in branch
• Other information: Minimum applicant age 16.

 

Wesleyan Bank – Five-year Fixed Rate Bond

Wesleyan Bank has launched new fixed rate deposit accounts this week, including a new five-year fixed account that pays 1.45% on anniversary. This account compares favourably against other bonds with similar terms currently available in the market and assumes a position within the top rate tables. As savers may expect with a fixed bond, earlier access and further additions are not permitted, and therefore careful planning would be advised. Those who are able to meet the £1,000 minimum deposit and who are comfortable with securing their money away for the term may find this an attractive option. This deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.45% gross / 1.45% AER payable on anniversary
• Notice / term: Five years
• Minimum opening amount: £1,000
• Maximum investment amount: £250,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 18.

Saga – Saga Easy Access Savings Account

Saga has made rate reductions to a selection of its products this week, including its easy access account. Despite a 0.25% rate cut, this option, which now pays 0.75% monthly, retains a position within the top 10 when compared against other similar accounts currently on offer. Investors should note that a review would be advised after 12 months when the bonus of 0.20% expires and the rate will reduce. However, those who require the flexibility and ability to access their savings pot at the moment and are looking to supplement their monthly income will find that this offers a competitive initial return and therefore receives an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.75% gross / 0.75% AER payable monthly
• Notice / term: None
• Minimum opening amount: £1
• Maximum investment amount: £100,000
• Access: Permitted
• Further additions: Permitted
• Opening account: Online
• Managing account: Online and by phone
• Other information: Minimum applicant age 18, operated by Goldman Sachs International Bank.

 

Mortgages

HSBC – Three-year fixed rate mortgage, 90% loan-to-value

In updates to its range this week, HSBC has made rate increases across its 85% and 90% loan-to-value products. One deal that sees an increase of 0.20% is the 90% loan-to-value three-year fixed deal, now priced at 2.49%. Despite the increase in rate, the deal includes an attractive incentive package of free valuation for all borrowers and free legal fees for those remortgaging. There is also no fee to pay, which may appeal to those looking to keep their set-up costs low. As a result, the deal earns a Moneyfacts product rating of Excellent.

Key product details:
• Rate: 2.49% fixed rate to 30.9.23
• Product fee: None
• Maximum loan-to-value: 90%
• Available to: All borrowers
• Incentives: Free valuation for all borrowers and free legal fees for remortgage customers
• Flexible features: Allows overpayments
• Lending area: Great Britain and Northern Ireland.

 

Loans

Hitachi Personal Finance – Personal Loan

This week Hitachi Personal Finance has increased the rate payable for those borrowing between £5,000 and £7,499 by 0.4% and has reduced the rate payable by 0.3% for those borrowing between £7,500 and £25,000, meaning that the cost for borrowing amounts between £5,000 and £25,000 is now 3.9% APR. Taking both amendments into account, overall this product remains one of the most appealing options for those borrowing between these sums when assessed against its competitors. It is of note that applicants must be aged 21 or over. On balance, the product earns an Excellent Moneyfacts product rating.

Key product details:
• Representative APR: 3.9%
• Loan period: Rate shown is based on a term of 60 months for a £5,000 borrowing
• Application available: Online or by phone
• Other information: Minimum age 21, electronic signature accepted so that money can be in the account within 48 hours, you may be offered an alternative APR dependent on credit rating.

 

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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