Moneyfacts Weekly Product News 13 05 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 13/05/2021

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

Bank of London and The Middle East – Premier Deposit Account – Three-year

Bank of London and The Middle East (BLME) has made rate increases to the majority of its Premier Deposit Accounts. The three-year option saw a rise of 0.05% and now pays 0.90% on anniversary as an expected profit rate, which sees this account assume a position in the top 10 when compared against other bonds with similar terms. This option may well appeal to those who are looking to secure a competitive return on their savings and who are also happy to secure their funds away for the term of the account. As may be expected in the fixed market, neither early access nor further additions are permitted, so savers may wish to plan accordingly. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.90% gross / 0.90% AER, payable on anniversary
  • Notice / term: Three years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £1,000,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: By post
  • Other information: Minimum applicant age 18. Joint account option available. BLME transfer account required. Sharia-compliant account – rates shown are expected profit rate.

 

FCMB Bank (UK) – Raisin UK - 2 Year Fixed Term Deposit

FCMB Bank (UK) has made various amendments to its range of Raisin UK products this week, including launching new offerings and increasing the rate on others. The 2 Year Fixed Term Deposit is one of the accounts to see an increase and now pays 0.88% on maturity (compounded annually). This improves the account’s position in our top rate tables when compared to other bonds with similar terms currently available. As is common in the fixed rate market, neither early access nor further additions are permitted, meaning that investors are advised to plan carefully. However, those happy to secure their savings pot away for the term and able to meet the minimum investment amount of £1,000 may find this an attractive option. Additionally, a welcome bonus of up to £50 can be claimed when investors open their first Raisin UK account. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.88% gross / 0.88% AER payable on maturity (compounded annually)
  • Notice / term: Two years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £85,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18.

 

Atom Bank – 1 Year Fixed Saver

This week, Atom Bank has increased the rate payable on its 1 Year Fixed Saver account. Rising by 0.10% to 0.85% payable on anniversary, this update sees this account secure the lead position when compared to other fixed bonds with similar terms currently on offer. Furthermore, investors who are hoping to supplement their income may be pleased to note that there is the ability to take a monthly interest option as well. While early access is not permitted, savers are able to make further additions for one week from account opening, which could boost its appeal to some. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.85% gross / 0.85% AER payable on anniversary, monthly interest option of 0.85% gross / 0.85% AER available
  • Notice / term: One year
  • Minimum opening amount: £50
  • Maximum investment amount: £100,000
  • Access: Not permitted
  • Further additions: Permitted for one week from account opening
  • Opening account: Via its mobile app
  • Managing account: Via its mobile app
  • Other information: Minimum applicant age 18.

 

Mortgages

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

Yorkshire Building Society has refreshed its range with rate reductions of up to 0.56% on selected fixed rates and the launch of new deals. One offering that may be particularly appealing to house purchasers with a 5% deposit is the 3.99% fixed rate to 31.7.26. It sits very slightly above the lowest initial rate currently offered in this sector of the market, however, there is no fee to pay – which might be welcome news to those who have struggled to build a larger savings pot to cover their deposit and associated mortgage costs. Borrowers can also benefit from a free valuation, which may be further appealing to those hoping to keep any set-up costs on a mortgage to a minimum. On balance, the competitive rate, lack of a fee and added incentive ensure that this deal receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.99% fixed rate to 31.7.26
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments. Underpayments and payment holidays considered, not to exceed the level of overpayments previously made
  • Lending area: Great Britain & Northern Ireland.

 

Furness Building Society – Two-year fixed rate mortgage, 80% loan-to-value

Furness Building Society has returned its two-year fixed rate offering at 80% loan-to-value to its range this week. This product is available to both those purchasing and remortgaging, and offers one of the most competitive rates in its sector of the market at 1.79%. Those with a 20% deposit or equity and who are looking to keep set-up costs on a new mortgage to a minimum may be further pleased to note that the reasonable fee of £999 can be added to the mortgage advance. This deal may be especially tempting to those who are remortgaging, as for these borrowers there is also a generous incentive package on offer, which earns the deal an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.79% fixed rate for two years
  • Product fee: £999
  • Maximum loan-to-value: 80%
  • Available to: All borrowers
  • Incentives: For those remortgaging only, free valuation and either free legal fees for those in England and Wales, or £150 towards legal fees for those in England, Wales or Scotland
  • Flexible features: Allows overpayments
  • Lending area: Great Britain.

 

first direct – Two-year fixed rate mortgage, 75% loan-to-value

first direct made reductions of up to 0.15% across a selection of its fixed rate deals this week. One product to see a cut was the two-year fixed rate at 75% loan-to-value. Borrowers who are looking to either purchase or remortgage with a 25% deposit/equity may be pleased to see that this product reduced by 0.10% and is now priced at 1.44%. There is a low fee of £490 that has to be paid upfront, and borrowers can also benefit from an incentive package of a free valuation, while those remortgaging can also receive free legal fees. The combination of competitive rate, low fee and generous incentives ensure this deal receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.44% fixed rate for two years
  • Product fee: £490
  • Maximum loan-to-value: 75%
  • Available to: All borrowers
  • Incentives: Free valuation, and for those remortgaging, free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

 

Cards

Barclaycard – Platinum 24 Month Balance Transfer Visa

In its latest update, Barclaycard has increased the introductory balance transfer fee from 0.90% to 1.00% on its Platinum 24 Month Balance Transfer Credit Card. Despite the fact that this increases the cost for borrowers transferring debt, at 1.00%, this fee still remains one of the lowest in the market and does not rise after the introductory interest-free period. While not offering the longest introductory terms, this card provides a good all-round option and earns an Excellent Moneyfacts product rating.

Key product details:

  • Introductory rate for balance transfers: 0% for 24 months
  • Introductory rate for purchases: 0% for six months
  • Standard rate for purchases: 21.9% APR
  • Balance transfer fee: 1.00%
  • Card fee: None
  • Opening method: Online, by phone or in branch
  • Card management: Online, by phone, in branch and via its mobile app
  • Other information: Minimum applicant age 21. Minimum income £20,000.

 

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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