Moneyfacts Weekly Product News – 06.08.2020

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.

United Trust Bank – UTB 2 Year Bond

This week has seen a number of updates from United Trust Bank, including rate increases to its UTB Bonds. The two-year version received an increase of 0.10%, and it now pays 1.20% on anniversary, improving its position in the top 10 when compared to other bonds with similar terms currently on offer in the market. As savers might expect from a fixed bond, further additions and earlier access are not permitted, so careful planning from those investing is advised. Those able to meet the £5,000 minimum investment will be pleased to note that this option secures an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.20% gross / 1.20% AER, payable on anniversary
• Notice / term: Two years
• Minimum opening amount: £5,000
• Maximum investment amount: £1,000,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online 
• Managing account: By phone and by post
• Other information: Minimum applicant age 18

Paragon Bank – 40 Day Notice Cash ISA (Issue 1)

Paragon Bank has launched a new 40 Day Notice Cash ISA this week, which pays a competitive 0.55% on anniversary, and sees this new offering assume a position within the top rate tables when compared to other variable ISAs currently on offer in the savings market. This may appeal to those looking to take full advantage of their ISA allowance and those looking to supplement their income will also be pleased to see a monthly interest option is available. In addition to the competitive return, this product will allow both withdrawals and earlier access, subject to a 40-day loss of interest penalty when notice is not given, giving savers some welcome flexibility. On balance, the deal earns an Excellent Moneyfacts product rating.

Key product details:

• Rate: 0.55% gross / 0.55% AER, payable on anniversary, monthly interest option available of 0.55% gross / 0.55% AER 
• Notice / term: 40 days
• Minimum opening amount: £500
• Maximum investment amount: ISA allowance
• Access: Permitted subject to 40 days’ notice or a 40-day loss of interest penalty 
• Further additions: Permitted via a nominated account
• Transfers in: Accepts cash and stocks and shares ISAs
• Transfers out: Permitted subject to 40 days’ notice or a 40-day loss of interest penalty
• Opening account: Online 
• Managing account: Online
• Other information: Minimum applicant age 18.

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

Principality Building Society has repriced its three-year fixed 80% loan-to-value deal, which sees a rate increase of 0.12%. Now priced at 2.00% to 30.11.23, this product is still the lowest rate currently available within this sector of the market. Those looking to keep any set-up costs associated with taking on a new mortgage to a minimum during these uncertain times will be further pleased to note that this deal carries no product fee, and in addition, they can also benefit from an incentive package of free valuation for all borrowers, with those remortgaging also eligible for free legal fees. Overall, despite the increase in rate, this combination of features ensures it remains an attractive option and it earns an Outstanding Moneyfacts product rating in the process.

Key product details:

• Rate: 2.00% fixed rate to 30.11.23
• Product fee: None
• Maximum loan-to-value: 80%
• Available to: All borrower types
• Incentives: Free valuation for all borrowers, and for those remortgaging free legal fees
• Flexible features: Allows overpayments
• Lending area: England and Wales.

Virgin Money – Personal Loan

This week sees Virgin Money launch an unsecured personal loan into the market. This product offers a very competitive headline rate of 3.1% for those borrowing between £7,500 and £15,000, over one to seven-year terms. It offers a generous maximum advance amount of up to £35,000. A further plus for some borrowers will be the fact that same-day funds can be available for those who hold an existing Virgin Money current account. On balance, the product earns an Excellent Moneyfacts product rating.

Key product details:

• Representative APR: 3.1% 
• Loan period: Rate shown is based on a term of 84 months for a £7,500 borrowing 
• Application available: Online, by phone and in branch
• Other information: Minimum age 18, electronic signature available, you may be offered an alternative APR dependent on credit rating.