Moneyfacts Weekly Product News 15 0721 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 15/07/2021

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

Bank of London and the Middle East (BLME) – Premier Deposit Account (Anticipated profit rate) – One year

This week saw Bank of London and the Middle East (BLME) make rate increases across a wide selection of its Premier Deposit Accounts. Investors looking for a competitive return may wish to note that the one-year option saw a rise of 0.15% and now pays an expected profit rate of 1.05% on maturity. This increase sees this account secure a position in our top rate tables and could well entice investors able to meet the minimum £1,000 investment and who are happy to secure their savings away for the one-year term, as neither early access nor further additions are permitted. Overall, this account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.05% gross / 1.05% AER payable on maturity
  • Notice / term: One year
  • 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.

 

Mortgages

Barclays Mortgage – Five-year fixed rate mortgage, 95% loan-to-value

Barclays Mortgage has made reductions of as much as 0.30% across a selection of its fixed rate mortgages this week, including updating mortgage guarantee scheme deals. The five-year fixed rate option for both first- and second-time buyers with a 5% deposit takes a cut of 0.17% and drops to 3.60% until 31 August 2026, making it an attractive proposition for those looking to purchase a home and who would like the security of a mid-term fixed rate. Although slightly lower initial rates can be found in this sector of the market, prospective borrowers may be pleased to see that there is no fee to pay on this deal, and they can also benefit from the incentive of a free valuation, which may be of particular interest to those who have had to stretch their savings pot to cover their deposit and may have little cash left over for the outgoings associated with a new mortgage. When assessed overall, this product receives a place in our top rate tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.60% fixed rate to 31.8.26
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

 

TSB – Five-year fixed rate mortgage, 80% loan-to-value

TSB made various amendments to products in their residential range this week, including making a rate cut of 0.10% on its five-year fixed rate product at 80% loan-to-value. Offered both directly and via selected intermediaries, this product is available to second-time buyers purchasing a home with a 20% deposit. Now priced at 1.99% until 30 November 2026, this deal could be tempting to those who are looking to lock in to a fixed rate which they are able to budget to each month, as not only is the initial rate competitive, sitting only fractionally higher than the lowest rate available in this sector of the market, but borrowers may also wish to note the reasonable £995 fee, which is offset by the incentive of a free valuation. Assessed as a whole, this product earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.99% fixed rate to 30.11.26
  • Product fee: £995
  • Maximum loan-to-value: 80%
  • Available to: Second-time buyers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments. Payment holidays considered after one year, subject to approval
  • Lending area: Great Britain.

 

Cards

MBNA Limited – Low Fee 0% Balance Transfer Credit Card Mastercard

In its latest update, MBNA Limited has improved the introductory interest-free balance transfer term on its Low Fee 0% Balance Transfer Credit Card Mastercard. Now one month longer than its predecessor, borrowers have 27-months interest-free to repay balance transfers and the deal is just two months shorter than the market-leading options. Additionally, the introductory balance transfer fee of 1.00% is reasonable, so this card could be a tempting option for those needing to transfer larger balances. However, this fee does rise to 5.00% outside of the introductory 60-day offer, so borrowers would be wise to compare and plan carefully before they apply and make subsequent transfers. The card earns an Outstanding Moneyfacts product rating overall.

Key product details:

  • Introductory rate for balance transfers: 0% for 27 months
  • Introductory rate for purchases: N/A
  • Standard rate for purchases: 21.9% APR
  • Balance transfer fee: 1.00% during first two months of account opening, then 5.00% after first 60 days of account opening
  • Card fee: None
  • Opening method: Online or in branch
  • Card management: Online, by phone and via its mobile app
  • Other information: Minimum applicant age 18. Minimum income £14,000.

 

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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