Moneyfacts Weekly Product News 10 06 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 10/06/2021

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

Close Brothers Savings – 2 Year Fixed Rate Cash ISA

In addition to launching a new 95-day notice account, Close Brothers Savings also increased rates across a selection of its products. One option to see a rise was the two-year ISA, which received a 0.11% increase and now pays 0.71% on anniversary, an update which propels this account to the lead position in our top tables when compared to other ISAs with similar terms. Investors who are looking to utilise their tax-free savings allowance and who are comfortable securing their savings pot away for the two-year term may be attracted by the competitive return and may be interested to know that further additions can be made within 10-days of account opening, which could be plus for some. Early access is only available on closure and is subject to a 150-day loss of interest penalty, so careful planning would be advised. On balance, the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.71% gross / 0.71% AER payable on anniversary
  • Notice / term: Two years
  • Minimum opening amount: £10,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted, on closure only, subject to 150-day loss of interest penalty
  • Further additions: Permitted within 10-days of account opening
  • Transfers in: Transfer instructions must be received within 10 days of account opening. Accepts cash and stocks & shares ISAs.
  • Transfers out: Permitted, subject to 150-day loss of interest penalty
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18.

 

Mortgages

Skipton Building Society – Five-year fixed rate mortgage, 95% loan-to-value

As well as launching a new two-year fixed rate deal at 95% loan-to-value this week, Skipton Building Society have also reduced their five-year fixed rate option in this sector. Receiving a substantial cut of 0.25%, this product is now priced at 3.74% to 30.9.26. Available to those purchasing a home, this may be a tempting option for those looking to secure the stability of a slightly longer-term fixed rate. Borrowers may wish to note that this is priced only slightly higher than the lowest initial rate currently offered within this sector of the market, yet there is also no fee to pay for this deal. Additionally, there is a generous incentive package available which includes a free valuation and £500 cashback, which may be of interest those who have stretched to build a 5% deposit and who are hoping to keep any costs involved in taking on a new mortgage to a minimum. On assessment this product earns an Outstanding Moneyfacts product rating and a position in our top tables.

Key product details:

  • Rate: 3.74% fixed rate to 30.9.26
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments. Payment holidays considered, subject to notice, approval and sufficient overpayments having been made previously
  • Lending area: Great Britain.

 

Santander – Two-year fixed rate mortgage, 70% loan-to-value

Borrowers who are looking to purchase a home and who have a 30% deposit available may wish to note that Santander has reduced the rate on its two-year fixed rate product this week. Following a cut of 0.03% this is now priced at 1.05% to 2.9.23, one of the lowest rates in its sector, and is available via intermediaries. There is a fee of £1,249 attached to the product, which borrowers have the option to either pay upfront or add to the advance. The appeal of this deal is enhanced by an incentive package which includes both a free valuation and £250 cashback. The combination of rate and features earns this deal an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.05% fixed rate to 2.9.23
  • Product fee: £1,249
  • Maximum loan-to-value: 70%
  • Available to: House purchase customers
  • Incentives: Free valuation and £250 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland. Available via intermediaries only.

 

HSBC – Two-year fixed rate mortgage, 60% loan-to-value

HSBC made various rate cuts to its 60%, 70% and 75% loan-to-value products this week. One deal which saw a reduction of 0.10% is the two-year deal at 60% loan-to-value which is now priced at 1.29% to 31.8.23. Available to both those purchasing or remortgaging with either a 40% deposit or equity, this product also provides an incentive package of a free valuation, while those remortgaging can also benefit from free legal fees. Following the rate cut, this already good overall package is now even more attractive and receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.29% fixed rate to 31.8.23
  • Product fee: None
  • Maximum loan-to-value: 60%
  • Available to: All borrower types
  • Incentives: Free valuation, and for those remortgaging, free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland.

 

Cards

Sainsbury’s Bank – 29 Month Balance Transfer Mastercard

The latest update from Sainsbury’s Bank sees an increase of one month made to the introductory 0% balance transfer term on their renamed 29 Month Balance Transfer credit card. This card has also now been made available to non-Nectar card holders, and it continues to offer customers the chance to earn Nectar points when purchasing, which could be an additional bonus for some. Following the amendments, this card moves to the top of the market for customers looking for introductory balance transfer offers and earns an Outstanding Moneyfacts product rating.

Key product details:

  • Introductory rate for balance transfers: 0% for 29 months
  • Introductory rate for purchases: 0% for 3 months
  • Standard rate for purchases: 21.9% APR
  • Balance transfer fee: 2.00% (min £3.00) during first three months from account opening, rising to 3.00% (min £3.00) after the first three months of account opening
  • Card fee: None
  • Opening method: Online or by phone
  • Card management: Online, by phone, by post and via its mobile app
  • Other information: Minimum applicant age 18. Minimum income £10,000.

 

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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