Moneyfacts Weekly Product News – 14.01.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 14/01/2021

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 – 3 Year Fixed Rate Cash ISA

Close Brothers Savings has launched a new three-year fixed rate cash ISA this week, which pays a competitive 0.75% on anniversary. Those who are able to meet the minimum investment amount of £10,000 and are looking to take advantage of their tax-free ISA allowance may find this an attractive proposition. Further additions are available within 10 days of account opening, which may be a plus for some. However, savers would need to be confident that they are happy to secure their savings pot away for the term of the deal, as earlier access is permitted only on account closure and subject to a loss of interest penalty. On balance, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.75% gross / 0.75% AER, payable on anniversary
  • Notice / term: Three years
  • Minimum opening amount: £10,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted, subject to a 270-day loss of interest penalty
  • Further additions: Permitted within 10 days of account opening
  • Transfers in: Accepts cash or stocks and shares ISAs. Transfer instructions must be received within 10 days of account opening
  • Transfers out: Permitted, subject to a 270-day loss of interest penalty
  • Opening account: Online or by post
  • Managing account: Online, by phone, and by post
  • Other information: Minimum applicant age 18.

 

Mortgages

Nationwide Building Society – Two-year fixed rate mortgage, 90% loan-to-value

Nationwide Building Society has reduced various rates across its residential mortgage range this week by up to 0.45%. The two-year fixed product for first-time buyers at 90% loan-to-value has received a cut of 0.25% and is now priced at 3.49%. This product carries a generous incentive package of a free valuation and also £500 cashback, which could well appeal to those hoping to keep the outgoings associated with setting up their first mortgage to a minimum, as may the fact that there is no fee to pay. This combination of rate and features sees the deal secure an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.49% fixed rate for two years
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: First-time buyers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments. Underpayments considered, subject to approval and previous overpayments having been made
  • Lending area: Great Britain and Northern Ireland (excluding Scilly Isles).

 

Newcastle Building Society – Two-year fixed rate mortgage, 85% loan-to-value

This week, Newcastle Building Society has reduced the rates on its 85% loan-to-value offerings. The largest cut of 0.29% has been applied to the two-year deal, which carries no fee and is now priced at 2.85% until 30 June 2023. This deal is available to both those purchasing or those remortgaging. Despite there being some slightly lower rates on offer within this sector of the market, this combination of competitive rate, no fee to pay and also the incentive of a free valuation, could ensure it is a tempting proposition for those with the required 15% equity or deposit and this deal secures an Outstanding Moneyfacts product rating as a result.

Key product details:

  • Rate: 2.85% fixed rate to 30.6.23
  • Product fee: None
  • Maximum loan-to-value: 85%
  • Available to: All borrowers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments
  • Lending area: Great Britain.

 

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

HSBC made a number of updates to its mortgage range this week, which has included the launch of a selection of products at 90% loan-to-value, as well as various fixed rates being reduced. One of those deals to see a cut in rate is the 60% loan-to-value five-year fixed rate deal. Dropping from 1.44% to just 1.39%, this product provides not only an attractive rate, which would remain stable and enable customers to budget for the initial five-year fixed term, but also a comprehensive incentive package of free valuation, while those remortgaging can also benefit from free legal fees. There is a reasonable product fee of £999, which borrowers should note would need to be paid upfront. Overall, this deal earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.39% 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
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

 

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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