Moneyfacts Weekly Product News – 04.06.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 04/06/2020

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

Bank of London and The Middle East – Two-year Premier Deposit Account

Bank of London and The Middle East (BLME) has reduced the rates on its Premier Deposit Accounts by up to 0.15% this week. Despite the two-year Premier Deposit Account receiving this cut and its expected profit rate reducing from 1.50% to 1.35%, this account still maintains a position in the top 10 when compared to other bonds with similar terms. For those able to meet the £1,000 minimum investment and are comfortable with securing their savings pot away for two years, this option offers a very competitive return. Savers should note that as is generally expected in the fixed rate savings market, earlier access and further additions are not permitted, therefore careful planning is advised. On balance, this account earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.35% gross / 1.35% AER, payable on its anniversary
• Notice / term: Two years
• Minimum opening amount: £1,000
• Maximum investment amount: £1 million
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: Postal
• Other information: Minimum applicant age 18, operates under Islamic finance principles, the rates displayed represent the expected profit rate, BLME transfer account required to hold funds pending investment.

Charter Savings Bank – 1 Year Fixed Rate Cash ISA

This week sees Charter Savings Bank launch a new one-year fixed rate ISA, which pays 0.95%. This deal takes a position within the top 10 products when compared to other ISAs currently available on similar terms. This account may attract savers who are looking to take full advantage of their ISA allowance over the short-term, but may also appeal to those who require access to their funds (subject to an interest penalty) during the one-year term. There is also a monthly interest option, which could suit those looking to supplement their income. Overall the deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.95% gross / 0.95% AER, payable on anniversary, monthly option of 0.95% gross / 0.95% AER available
• Notice / term: One year
• Minimum opening amount: £5,000
• Maximum investment amount: ISA allowance
• Access: Permitted subject to a 150-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: Online
• Managing account: Online
• Other information: Minimum applicant age 18, on maturity funds are paid into a linked or nominated account.

 

Mortgages

Furness Building Society – Two-year discounted variable rate mortgage, 90% loan-to-value

Furness Building Society has launched a selection of new five-year fixed rate mortgages and a range of discounted variable rate products this week. One new option of note is a two-year discounted variable rate mortgage priced at 2.19% at 90% loan-to-value. Consumers will be pleased to note that this is the lowest rate currently offered in this sector of the market. A product fee of £999 is chargeable, all of which can be added to the mortgage advance or be paid upfront. Borrowers can benefit from an incentive package of free valuation for all customers and either free legal fees or £150 towards legal costs for those remortgaging (dependent on lending area). On balance, this deal earns an Outstanding Moneyfacts product rating.

Key product details:
• Rate: 2.19% discounted variable rate for two years
• Product fee: £999, all of which can be added to the advance or paid upfront
• Maximum loan-to-value: 90%
• Available to: All borrower types
• Incentives: Free valuation and for those remortgaging free legal fees or £150 towards legal costs
• Flexible features: Allows overpayments
• Lending area: Great Britain.



TSB – Two-year fixed rate mortgage, 85% loan-to-value

TSB has released various new fixed rate products this week, which provide borrowers with up to 85% loan-to-value. One notable new deal is the 1.44% two-year fixed rate for house purchase customers, which carries a reasonable fee of £995 that must be paid upfront. On rate alone, this is the lowest priced option in this sector and additionally, consumers will also benefit from a free valuation, making this a very attractive overall proposition. On balance, this deal earns an Outstanding Moneyfacts product rating.

Key product details:
• Rate: 1.44% fixed rate to 31.8.22
• Product fee: £995, paid upfront
• Maximum loan-to-value: 85%
• Available to: House purchase customers
• Incentives: Free valuation
• Flexible features: Allows overpayments. Payment holidays considered after one year
• Lending area: Great Britain.

 

Barclays Mortgage – Two-year tracker mortgage, 60% loan-to-value

This week sees Barclays Mortgage introduce new two-year tracker mortgage products, including a deal priced at 1.24% for two years at 60% loan-to-value for those borrowing advances of up to £2 million. Available to those purchasing or remortgaging, the reasonable fee of £999 can be paid upfront or added to the advance. There is also a competitive incentive package included of free valuation for all customers and those remortgaging can opt for either free legal fees or £200 cashback, which may appeal to those looking to keep their set-up costs down. Overall, this product earns an Excellent Moneyfacts product rating.”

Key product details:
• Rate: 1.24% tracker rate for two years
• Product fee: £999, all of which can be added to the advance or paid upfront
• Maximum loan-to-value: 60%
• Available to: All borrower types
• Incentives: Free valuation and for those remortgaging free legal fees or £200 cashback
• Flexible features: Allows unlimited overpayments
• Lending area: Great Britain & Northern Ireland.

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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