Moneyfacts Weekly Product News 08 07 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 08/07/2021

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

Oxbury Bank – Personal 2 Year Bond Account – Issue 3

Amongst various changes to its range of Personal savings accounts, Oxbury Bank has applied a significant rate rise on its two-year Personal Bond account. Increasing by 0.45% this week, this account now pays a rate of 1.15% on anniversary which secures it a place towards the top of our tables and ensures that this may be an attractive option for savers who are happy to secure their funds away for the two-year term in order to receive a decent return. As may be expected in the fixed bond market, early access is not permitted, however, further additions can be made within 14-days of opening the account, which may be of interest to some. Overall, this account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.15% gross / 1.15% AER payable on anniversary
  • Notice / term: Two years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £500,000
  • Access: Not permitted
  • Further additions: Permitted within 14-days of account opening, via nominated account
  • Opening account: Online
  • Managing account: Online and via its mobile app
  • Other information: Minimum applicant age 18. Initial deposit must be made within 14-days of account opening, or account will automatically close. Oxbury App required to use online banking.

 

Coventry Building Society – Fixed Rate ISA (133) 30.09.22

Savers who are looking to make the most of their tax-free savings allowance may wish to note the rate increases applied by Coventry Building Society to its Fixed Rate ISAs as part of its latest range update this week. Following an increase of 0.20%, the one-year fixed option now pays 0.61% yearly, and following the rate increase this deal now moves further up our top tables when compared against other fixed ISAs with similar terms. Early access is only available on closure and is subject to a 120-day loss of interest penalty, so careful planning would be advised, however, further additions can be made within 14-days of account opening or while the issue remains open, whichever period is longer, which may be a benefit for some investors. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.61% gross / 0.61% AER payable yearly
  • Notice / term: To 30.9.22
  • Minimum opening amount: £1
  • Maximum investment amount: ISA allowance
  • Access: Permitted on closure and subject to 120-day loss of interest penalty
  • Further additions: Permitted within 14-days of account opening or whilst issue remains open, whichever period is longer
  • Transfers in: Permitted within 14-days of account opening, or whilst issue remains open, whichever period is longer. Accepts cash or stocks and shares ISAs, Help to Buy ISAs, Innovative Finance ISAs and Lifetime ISAs (cash or stocks and shares)
  • Transfers out: Permitted, subject to a 120-day loss of interest penalty
  • Opening account: Online, by phone, by post and in branch
  • Managing account: Online, by phone, by post and in branch
  • Other information: Minimum age 16.

 

Mortgages

Leeds Building Society – Two-year fixed rate mortgage, 95% loan-to-value

Those who are looking to purchase a home and who have a 5% deposit available may be interested to see that Leeds Building Society has added a £500 cashback incentive to its two-year fixed rate deal at 95% loan-to-value. Priced at 3.60% to 31 October 2023, this deal is available to both first- and second-time buyers. While this may not be the lowest initial rate offered in this sector, there is no fee to pay and as well as the generous cashback, the product continues to offer a free valuation as part of the incentive package, ensuring that its appeal – particularly for those with limited funds available to set up a mortgage – is greatly enhanced. When these factors are taken into account, this product receives a place in our top rate tables and also an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.60% fixed rate to 31.10.23
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments
  • Lending area: England, Wales, mainland Scotland and Northern Ireland.

 

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

This week Halifax have made reductions of up to 0.35% across various deals in their range for house purchase customers. One deal to receiver an update is the two-year fixed product at 85% loan-to-value. Available to second-time buyers, this deal received a cut of 0.23% and is now priced at 2.01% to 31 August 2023. Following this cut to the initial rate, this is now not only one of the lowest available in this sector of the market, but, taking into account the reasonable fee of £995 associated with the deal (which borrowers would have the option to pay upfront or to add to the advance), despite the lack of further incentives, this product earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 2.01% fixed rate to 31.8.23
  • Product fee: £995
  • Maximum loan-to-value: 85%
  • Available to: Second-time buyers
  • Incentives: None
  • Flexible features: Allows overpayments. Payment holidays considered after one year, subject to approval
  • Lending area: Great Britain and Northern Ireland.

 

Buy-to-Let Mortgages

Skipton Building Society – Five-year fixed rate mortgage, 60% loan-to-value

Landlords who have 40% equity or deposit available and who are looking to lock-in to a five-year fixed rate may wish to note that in its latest update, Skipton Building Society have applied a rate reduction of 0.10% to its 60% loan-to-value deal with a £995 fee. Now priced at 1.85% to 30 September 2026 and available to both those purchasing or remortgaging a rental property, for investors with the required level of equity or deposit, this not only offers a competitive initial rate but also a relatively low fee of £995 and an incentive package. On balance, when assessed overall this deal enters our top tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.85% fixed rate to 30.9.26
  • Product fee: £995
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation and for those remortgaging, free legal fees
  • Flexible features: Allows overpayments
  • 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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