Moneyfacts Weekly Product News – 11.02.21 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 11/02/2021

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

Marcus by Goldman Sachs® – Online Savings Account

Savers hoping to keep flexible access to their savings pot may be pleased to see that Marcus by Goldman Sachs® has relaunched its Online Savings Account this week. Paying a very competitive 0.50% monthly, this account assumes a position towards the top of the table when compared against other similar easy access accounts currently on the market. While unlimited withdrawals and further additions are possible, investors should note that all transactions must be made via a nominated account. The account secures an Excellent Moneyfacts product rating.

Key product details:

• Rate: 0.50% gross / 0.50% AER, payable monthly
• Notice / term: None
• Minimum opening amount: £0
• Maximum investment amount: £250,000
• Access: Permitted
• Further additions: Permitted
• Opening account: Online
• Managing account: Online and by phone
• Other information: Minimum applicant age 18, joint account option available, UK mobile phone number required to apply.

 

Coventry Building Society – Regular Saver (5)

Coventry Building Society has reduced the rate payable on its Regular Saver this week by 0.25%. Despite the cut, it now pays 1.05% gross on anniversary and therefore maintains a position within the top 10 when compared to other regular savings deals currently available. This account may appeal to those looking to use some of their disposable income to start a savings habit as there is no minimum monthly deposit amount and over the 12-month fixed term a maximum of £500 per month can be paid in. Savers may wish to note that while only new money to the institution is accepted, the account permits earlier access, subject to an interest penalty, and on balance receives an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.05% gross / 1.05% AER, payable on anniversary
• Notice / term: 12-month fixed term
• Minimum opening amount: £1
• Maximum investment amount: £6,000 total, maximum of £500 per month
• Access: Permitted subject to a 30-day loss of interest penalty
• Further additions: Unlimited number of additions permitted up to £6,000 total over 12-month fixed term, maximum of £500 per month
• Opening account: Online, by phone, by post or in branch
• Managing account: Online, by phone, by post and in branch
• Other information: Minimum applicant age 16, joint account option available, reverts to Easy Access Saver (7) at end of term.

 

Mortgages

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

In its latest update, Leeds Building Society has launched a couple of new residential mortgage products. One of these is a three-year fixed rate available up to 80% loan-to-value, priced at 2.09%. This is the lowest initial rate in the sector, and this product also has a reasonable fee of £999 that borrowers can opt to either pay upfront or add to their borrowing and a comprehensive incentive package, which could be attractive to those hoping to keep any outlay for a new mortgage to a minimum. On assessment, this product achieves a place in our top rate tables and earns an Outstanding Moneyfacts product rating.

Key product details:

• Rate: 2.09% fixed rate to 31.5.24
• Product fee: £999
• Maximum loan-to-value: 80%
• Available to: All borrowers
• Incentives: Free valuation, and for those remortgaging help towards costs
• Flexible features: Allows overpayments
• Lending area: Great Britain and Northern Ireland.

 

Barclays Mortgage – Five-year fixed rate mortgage, 60% loan-to-value

Barclays Mortgage has reduced a number of fixed rates in its range this week. One deal to see a cut is the five-year fixed rate at 60% loan-to-value, which sees a drop of 0.05%. Now priced at 1.29% to 31.5.26, this equals the lowest rate offered in this sector currently, but benefits by carrying a lower fee (£999) when compared to its competitors. There is also an incentive package on offer with all borrowers able to benefit from a free valuation, while those remortgaging can receive either free legal fees or £250 cashback. This combination of features secures this product an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.29% fixed rate to 31.5.26
  • Product fee: £999
  • Maximum loan-to-value: 60%
  • Available to: All borrowers
  • Incentives: Free valuation, and for those remortgaging free legal fees or £250 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

Buy-to-Let Mortgages

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

Leeds Building Society has made various rate reductions across its buy-to-let range this week, including a cut of 0.05% to the five-year fixed rate at 60% loan-to-value, now priced at 1.86% to 31.3.26. While there are slightly lower rates on offer in this sector of the market, many of the lower-rated products carry a larger fee than the £999 attached to this particular deal – which borrowers also have the option of either paying upfront or adding to their mortgage borrowing. Furthermore, an incentive package is available of a free valuation for all, while those remortgaging can receive help towards costs, which may make this option even more attractive to those looking to keep set-up costs to a minimum. Overall the deal receives an Excellent Moneyfacts product rating.

Key product details:

• Rate: 1.86% fixed rate to 31.3.26
• Product fee: £999
• Maximum loan-to-value: 60%
• Available to: Second-time buyers and remortgage customers
• Incentives: Free valuation and for those remortgaging, help towards costs
• Flexible features: Allows overpayments
• Lending area: England, Wales, mainland Scotland and Northern Ireland.

 

Banking

HSBC – Advance Account

HSBC has launched a new £125 switching incentive on a couple of its current accounts, including the Advance Account. This addition has likely further increased the appeal of this particular account to those looking to switch, as not only does this carry no monthly fee, but another feature that may be particularly interesting to some customers is the free emergency cash service should they lose their cards. Those comfortable that they will be able to fund the account with the required £1,750 per month (or £10,500 per six months) may well be tempted by this account, which earns an Excellent Moneyfacts product rating.

Key product details:

• Credit interest / reward: £125 for accounts switched using CASS with a minimum of two deposits / standing orders. Free Emergency Cash Service to withdraw up to $10,000. Eligible for preferential Regular Saver product.
• Cashback on debit card purchases: None
• Account fee: None
• Credit interest: None
• Arranged overdraft: 39.9% EAR
• Opening account: Online
• Managing account: Online, in branch, by phone, mobile app, post office and text alerts
• Other information: Minimum applicant age 18.

 

Loans

TSB – Personal Loan

This week, TSB has amended the rates on selected tiers of its Personal Loan. This update sees the rate for borrowing over terms of 61 months to seven years rise on amounts of £7,500 to £20,000 (now priced at 6.9% APR) and for amounts of £20,001 to £25,000 (now priced at 5.9% APR). Despite these increases for longer terms, those looking to raise amounts of £7,500 to £25,000 will find this loan still offers some of the most competitive rates available at 2.8% APR for maximum terms of up to five years. There is an option to apply for repayment holidays (subject to conditions) and loan top-ups are also available, the flexibility of which may be appealing to some borrowers. Overall, this loan earns an Excellent Moneyfacts product rating.

Key product details:

• Representative APR: 2.8%
• Loan period: Rate shown is based on a term of 60 months for a £7,500 borrowing
• Application available: Online, by phone and in branch
• Other information: Minimum age 18 but must be over age 21 to apply online, no minimum income, you may be offered an alternative APR dependent on credit rating.

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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