Moneyfacts Weekly Product News – 05.11.20

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

DF Capital – 15 Month Fixed Rate Deposit (Issue 1)

This week, DF Capital has launched a new 15-month fixed term bond, which pays 1.10% on maturity. The deal takes the lead position in the top 10 when compared against other bonds with similar terms currently available. As is common with fixed accounts, earlier access is not permitted, however, further additions are permitted for 14 days from account opening, which may be a positive for some savers. This deal earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.10% gross / 1.10% AER, payable on maturity
• Notice / term: 15 months
• Minimum opening amount: £1,000
• Maximum investment amount: £85,000
• Access: Not permitted
• Further additions: Permitted within 14 days of account opening
• Opening account: Online
• Managing account: Online – account operated through secure email and not an online banking portal
• Other information: Minimum applicant age 18.

PCF Bank – 3 Year Term Deposit (Issue 18)

PCF Bank has launched a new three-year fixed rate bond this week, which pays 1.26% on anniversary. This account assumes a position in the upper half of the top rate tables when compared to other fixed bonds with similar terms. Savers who are comfortable locking their nest egg away for the term of this deal may consider this an attractive option. As is common with fixed accounts, neither earlier access nor further additions are permitted and therefore careful planning is advised. This deal earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.26% gross / 1.26% AER, payable on anniversary
• Notice / term: Three years
• Minimum opening amount: £1,000
• Maximum investment amount: £250,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: Online, by phone and by post
• Other information: Minimum applicant age 18.

Leeds Building Society – 2 Year Fixed Rate ISA (Issue 137)

This week, Leeds Building Society has made a number of changes to its savings range, including a rate reduction of 0.10% on its 2 Year Fixed Rate ISA. Now paying 0.75% yearly, this account retains a position in the top 10 when compared against other ISAs with similar terms. Available from a minimum investment amount of £100, investors wishing to utilise their tax-free ISA allowance should note that earlier access is permitted, but subject to a loss of interest penalty. Additionally, some may consider it a plus that further additions can be made for the 2020-21 tax year until 31.12.20. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 0.75% gross / 0.75% AER, payable yearly
• Notice / term: To 02.01.2023
• Minimum opening amount: £100
• Maximum investment amount: ISA allowance
• Access: Permitted, subject to 150-day loss of interest penalty
• Further additions: Permitted for 2020/2021 tax year until 31.12.20
• Transfers in: Accepts cash or stocks and shares ISAs, Help to Buy ISAs and Lifetime ISAs (cash or stocks and shares)
• Transfers out: Permitted, subject to 150-day loss of interest penalty
• Opening account: Online, by post and in branch
• Managing account: By post and in branch
• Other information: Minimum applicant age 16.

Marsden Building Society – Two-year fixed rate mortgage, 85% loan-to-value

Launched this week, Marsden Building Society has introduced a two-year fixed rate priced at 3.09%, which is available up to a maximum of 85% loan-to-value. This option compares especially favourably against its competitors as it carries no product fee, and borrowers can also benefit from incentives that include a free valuation for all, and also free legal fees for those remortgaging. This combination of features ensures this is a very attractive option, which may be particularly appealing to those looking to keep the set-up costs associated with a new mortgage deal to a minimum. On balance, this product earns an Outstanding Moneyfacts product rating.

Key product details:

• Rate: 3.09% fixed rate to 31.3.23
• Product fee: None
• Maximum loan-to-value: 85%
• Available to: All borrower types
• Incentives: Free valuation, and for those remortgaging free legal fees
• Flexible features: Allows overpayments
• Lending area: England and Wales.

Loughborough Building Society – Three-year fixed rate mortgage, 80% loan-to-value

Loughborough Building Society has made various amendments to its range this week, including a rate increase of 0.20% applied to its three-year fixed rate offering at 80% loan-to-value. Now priced at 2.39%, despite the rise in rate, this remains the lowest initial rate currently available within this sector of the market. Not only that, but the product fee charged has been cut to £499 in this update, while the incentive of a free valuation for all borrowers remains on offer. This could be an appealing choice for those with 20% deposit or equity available, and earns an Outstanding Moneyfacts product rating.

Key product details:

• Rate: 2.39% fixed rate for three years
• Product fee: £499
• Maximum loan-to-value: 80%
• Available to: All borrower types
• Incentives: Free valuation
• Flexible features: Allows overpayments
• Lending area: England and Wales.

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

Nationwide Building Society has made reductions to a selection of its fixed rate mortgage deals this week, including its 60% loan-to-value two-year fixed rate product at 1.74% for first-time buyers. Now reduced to 1.34%, this option carries a reasonable fee of £999, which can be added to the advance, and also offers an attractive incentive package of free valuation and £500 cashback. Those hoping to purchase their first home and who have the required 40% may find this an appealing option and the product earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.34% fixed rate for two years
• Product fee: £999
• Maximum loan-to-value: 60%
• Available to: First-time buyers
• Incentives: Free valuation and £500 cashback
• Flexible features: Allows overpayments and underpayments (subject to overpayments previously having been made)
• Lending area: Great Britain and Northern Ireland (excludes Scilly Isles).