Moneyfacts Weekly Product News – 04.03.21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 04/03/2021

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

Cynergy Bank – Online Easy Access Account (Issue 35)

Among various amendments across its range of savings products, this week Cynergy Bank has lifted the existing customer restriction on its Online Easy Access Account. Now paying a rate of 0.50%, within this limited sector of the market it takes the lead position in our top rate tables when compared against other easy access accounts that offer a bonus. Savers looking to keep flexible access to their savings pot could be tempted by the return, but may wish to schedule a review after 12 months when the bonus will expire and the rate reduces by 0.20%. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.50% gross / 0.50% AER, (0.20% of which is a bonus that expires after 12 months) payable on anniversary
  • Notice / term: None
  • Minimum opening amount: £1
  • Maximum investment amount: £1,000,000
  • Access: Permitted, via nominated account
  • Further additions: Permitted
  • Opening account: Online – Cynergy Bank Authenticator app or Digipass required to use online banking
  • Managing account: Online – Cynergy Bank Authenticator app or Digipass required to use online banking
  • Other information: Minimum applicant age 18, joint account option available.

 

OakNorth Bank – 18-Month Fixed Term Deposit

OakNorth Bank has increased the rates on a selection of its Fixed Term Deposit accounts by 0.01% this week. The 18-month option, now paying 0.63% on maturity, therefore cements its position in our top rate tables when compared against other bonds with similar terms currently available. Savers who are comfortable securing their funds away for the term may be attracted by the competitive return, as earlier access is not permitted and therefore careful planning is advised. However, further additions are possible within the first 14 days of opening the account, which may be a plus for some investors. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.63% gross / 0.63% AER, payable on maturity, compounded annually
  • Notice / term: 18 months
  • Minimum opening amount: £1
  • Maximum investment amount: £500,000
  • Access: Not permitted
  • Further additions: Permitted within 14 days of account opening
  • Opening account: Online or via its app
  • Managing account: Online and via its app
  • Other information: Minimum applicant age 18, joint account option available.

 

Mortgages

Yorkshire Building Society – Two-year fixed rate mortgage, 90% loan-to-value

In addition to making rate reductions across a selection of its products, Yorkshire Building Society has also launched various new deals this week. One of these is a new two-year fixed rate option for first-time buyers at 90% loan-to-value, which is priced at 3.54% to 31.5.23. While this is slightly higher than the lowest rates currently on offer within this sector of the market, there is no fee to pay and borrowers can also benefit from a generous incentive package of both free valuation and £1,000 cashback. Therefore, those who are looking to keep any mortgage set-up costs as low as possible may find this an attractive option, particularly if they have exhausted their savings pot paying for their deposit. On assessment, this product achieves a place in our top rate tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 3.54% fixed rate to 31.5.23
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: First-time buyers only
  • Incentives: Free valuation and £1,000 cashback
  • Flexible features: Allows overpayments. Underpayments and payment holidays considered but cannot exceed the level of overpayments previously made.
  • Lending area: Great Britain and Northern Ireland.

 

Santander – Five-year fixed rate mortgage, 60% loan-to-value

Santander has made various changes in its latest residential mortgage update, including selected rate reductions. One deal to benefit from a rate cut this week is the five-year fixed rate for those purchasing a home. Following a drop in rate of 0.04%, this deal is now priced at 1.30% until 2.6.26 and therefore sits only fractionally above the lowest rates currently offered in this sector of the market. For those with the requisite 40% deposit and who are looking for the stability and protection of a longer-term fixed rate, the appeal of this product is increased by the reasonable fee of £999 (for which there is the option to add to the loan amount or to pay upfront), and borrowers can also benefit from an incentive package of free valuation and £250 cashback. On balance, the deal receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.30% fixed rate to 2.6.26
  • Product fee: £999
  • Maximum loan-to-value: 60%
  • Available to: House purchase customers
  • Incentives: Free valuation and £250 cashback
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain and Northern Ireland.

 

Buy-to-Let Mortgages

Leeds Building Society – Two-year fixed rate mortgage, 60% loan-to-value

As well as reducing a selection of its buy-to-let products, Leeds Building Society has launched four new fixed-rate deals this week. At 2.04% to 30.6.23, the new product at 60% loan-to-value is priced slightly above the lowest rates currently offered in this sector of the market. However, this option benefits from being fee-free, and also providing a comprehensive incentive package of free valuation for all borrowers, while those remortgaging their buy-to-let property can also benefit from free legal fees. On assessment, this product earns a place in our top rate tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.04% fixed rate to 30.6.23
  • Product fee: None
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage borrowers
  • Incentives: Free valuation, and for those remortgaging help towards costs
  • Flexible features: Allows overpayments
  • Lending area: England, Wales, mainland Scotland and Northern Ireland.

 

Cards

Santander – All-in-One Credit Card

This week, Santander has increased the standard purchase rate by 2% APR and also reduced the 0% introductory purchase term on its All-in-One credit card to 20 months. While these changes will make purchases on these cards a little more costly, this card remains one of the best currently on offer for its introductory purchase term, as does the 26-month 0% introductory balance transfer term, and so is likely to be an attractive option for those wishing to make purchases and transfer debt on an interest-free basis. There is a £3 monthly fee for the card that consumers should be aware of, but also a cashback offer of 0.5% on purchases, which could be a plus for some. Overall the card earns an Outstanding Moneyfacts product rating.

Key product details:

  • Introductory rate for purchases: 0% for 20 months
  • Introductory rate for balance transfers: 0% for 26 months
  • Standard rate for purchases: 23.7% APR
  • Balance transfer fee: 0% during introductory transfer period, 3.00% (min £5.00) thereafter
  • Card fee: £3.00 per month
  • Opening method: Online, by phone or in branch
  • Card management: Online, by phone, in branch, by post and via its mobile app
  • Other information: Minimum age 18, minimum income £7,500.
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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