Moneyfacts Weekly Product News – 03.12.20 | moneyfacts.co.uk

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 It is now over 6 months old so the content may be out of date.

Eleanor Williams

Finance Expert & Press Officer
Published: 03/12/2020

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.

Savings

Hampshire Trust Bank – 2 Year Bond (Issue 47)

Hampshire Trust Bank has made amendments to its fixed rate bond products this week, including making a significant rate increase of 0.51% on its two-year bond, which now pays 0.91% on anniversary. Securing a position in our top rate tables, this offers a competitive return for those happy to lock their savings pot away for the two-year term, as earlier access is not permitted. However, some savers may be pleased to note that further additions can be made for 14 days after opening the account. On balance, this bond receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.91% gross / 0.91% AER, payable on anniversary
  • Notice / term: Two years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £250,000
  • Access: Not permitted
  • Further additions: Permitted for 14 days from account opening
  • Opening account: Online. Option to open by phone for existing account customers only
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18. Joint account option available.

 

Habib Bank Zurich plc – HBZ Sirat eDeposit

Among other changes to its savings range this week, Habib Bank Zurich plc has launched a new 12-month HBZ Sirat eDeposit, which pays an expected profit rate of 0.85% on maturity. This Sharia’a-compliant account gains a position in the top 10 when compared against other bonds with similar terms that are currently available. As is common with many bonds, earlier access is not permitted, so careful planning is advised, however, savers do have 30 days from account opening to make further additions, which could be a plus for some. This account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.85% gross / 0.85% AER, payable on maturity
  • Notice / term: 12 months
  • Minimum opening amount: £5,000
  • Maximum investment amount: £1,000,000
  • Access: Not permitted
  • Further additions: Permitted within 30 days of account opening
  • Opening account: Online
  • Managing account: By post
  • Other information: Minimum applicant age 18. Sharia-compliant account – rates shown are expected profit rate. Joint account option available.

 

Mortgages

Platform – Two-year fixed rate mortgage, 75% loan-to-value

Among a variety of updates to its range, Platform has made reductions to selected products this week, which includes a cut of 0.46% to its two-year fixed rate at 75% loan-to-value. Now priced at 1.59%, this product carries no product fee. In addition, borrowers can also benefit from a generous incentive package of free valuation and £250 cashback, while remortgage customers also have the option of free legal fees, ensuring that this product is a very attractive proposition, particularly for those looking to keep the cost of setting up a new mortgage to a minimum. Overall, the combination of low initial rate and other features means that this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.59% fixed rate to 31.03.23
  • Product fee: None
  • Maximum loan-to-value: 75%
  • Available to: All borrowers
  • Incentives: Free valuation, £250 cashback, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain. Available via selected intermediaries only.

 

Lloyds Bank – Five-year fixed rate remortgage, 85% loan-to-value

One of the products to receive a rate amendment in the latest update from Lloyds Bank is the 85% loan-to-value deal for remortgage customers. Despite an increase of 0.47%, this deal (now priced at 2.67%) may well entice those with 15% equity who are looking to secure a longer-term fixed rate mortgage. This option has a reasonable fee of £999 that can be added to the advance, which could be a positive for those looking to keep any outgoings related to a new mortgage deal to a minimum. There is also an incentive package of a free valuation and also free legal fees. Therefore, on balance, this product secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.67% fixed rate to 28.2.26
  • Product fee: £999
  • Maximum loan-to-value: 85%
  • Available to: Remortgage customers
  • Incentives: Free valuation and free legal fees
  • Flexible features: Allows overpayments, payment holidays considered after one year
  • Lending area: Great Britain and Northern Ireland.

 

TSB – Two-year fixed rate mortgage, 90% loan-to-value

TSB has launched new 90% loan-to-value products this week for those purchasing homes, including a two-year fixed rate option priced at 3.84%. In a sector where products have been scarce of late, this deal could be even more attractive to those looking to purchase with a 10% deposit, as it will also enable them to keep set-up costs to a minimum as there is no product fee to pay. Borrowers can also benefit from the incentives of free valuation and £500 cashback. This deal secures an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.84% fixed rate to 28.2.23
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments, payment holidays considered after one year
  • Lending area: Great Britain.
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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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