Moneyfacts Weekly Product News 17 06 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 17/06/2021

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

Gatehouse Bank – Fixed Term Green Saver

Gatehouse Bank has made increases to a number of its Green savings products this week, including a notable rise of 0.12% on its one-year Fixed Term Green Saver. Now paying an expected profit rate of 0.91% on maturity, this not only offers a very competitive return for those happy to secure their funds away for the term of the deal, but furthermore, Gatehouse Bank will plant a tree in a UK woodland when an account is opened and funded, which may make this account an even more attractive choice for those who are looking for ways to save that also support sustainable principles. Following the update this account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.91% gross / 0.91% 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: Online
  • Other information: Minimum applicant age 18. Joint account option available. Shariah-compliant account, rates shown are expected profit rates.

 

Cynergy Bank – Online ISA (Issue 14)

Cynergy Bank made rate rises across a broad selection of its savings product this week, including applying a 0.07% increase to its Online ISA. Now paying an attractive 0.54% yearly, this account assumes the lead position in our top rate tables when compared to other variable ISAs currently on offer. The account can be opened with investments of as little as £1 and those who are looking to utilise their tax-free savings allowance may be tempted by the return and also the fact that withdrawals are permitted, ensuring they maintain some access to their funds which may be a priority for many during these uncertain times. Following the update this account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.54% gross / 0.54% AER payable yearly
  • Notice / term: None
  • Minimum opening amount: £1
  • Maximum investment amount: ISA allowance
  • Access: Permitted
  • Further additions: Permitted
  • Transfers in: Permitted on account opening only. Accepts cash ISAs.
  • Transfers out: Permitted
  • Opening account: Online
  • Managing account: Online
  • Other information: Minimum applicant age 18. Cynergy Bank Authenticator App or Digipass required to use online banking.

 

Mortgages

Santander – Two-year fixed rate mortgage, 90% loan-to-value

Santander has made rate reductions of as much as 0.26% across a selection of its fixed rate deals this week. Those hoping to purchase and who have a 10% deposit available may be interested to note that the two-year fixed rate deal has taken a notable cut of 0.20% and is now priced at 3.10% to 2.9.23. While this rate sits just a little above the lowest initial rates available in this sector of the market, it is important to note that this deal has no fee, and additionally those who are focusing on keeping any outlay on mortgage costs to a minimum may be further pleased to see there is a generous incentive available of both a free valuation and £250 cashback. When both rate and features are considered, this product earns a position in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.10% fixed rate to 2.9.23
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: House purchase customers
  • Incentives: Free valuation and £250 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland.

 

Platform – Three-year fixed rate mortgage, 75% loan-to-value

This week sees Platform make rate reductions across the majority of its residential mortgage products. One deal to receive a cut of 0.05% was the three-year fixed rate at 75% loan-to-value. Now priced at 1.53% to 31.8.24, this deal is available to all borrower types and is offered via selected intermediaries. There is a reasonable fee of £999 to be paid, which borrowers do have the option to add to the advance, and the appeal of the overall deal is further enhanced by the generous incentive package of a free valuation and £250 cashback, while those remortgaging can also benefit from free legal fees, which could be of interest to those hoping to ensure that any outgoings are kept to a minimum when setting up their new mortgage. On assessment, this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.53% fixed rate to 31.8.24
  • Product fee: £999
  • Maximum loan-to-value: 75%
  • Available to: All borrower types
  • Incentives: Free valuation and £250 cashback, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain. Available via selected intermediaries only.

 

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

This week HSBC has launched new three-year fixed rate deals and also made rate cuts across a swathe of its residential mortgage products of up to 0.20%. The two-year fixed rate deals at 60% loan-to-value received reductions of 0.05%, seeing the fee-paying option drop to an initial rate of 0.99%, however, on assessment it is the fee-saver product which works out better overall. This product is now offered at 1.24% to 31.8.23 and is available to both those purchasing or remortgaging in this loan-to-value tier. The deal continues to provide an incentive package of a free valuation, with free legal fees available for remortgage customers as well and there is no fee to pay. Overall, the product already had a place in our top tables, but following this rate reduction the appeal has been further enhanced and it earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.24% 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.

 

Buy-to-Let Mortgages

Skipton Building Society – Five-year fixed rate mortgage, 75% loan-to-value

One of the buy-to-let deals from Skipton Building Society to see an improvement this week is a five-year fixed option at 75% loan-to-value. Receiving a rate cut of 0.02% sees this deal now priced at 2.14% to 30.9.26. There is a fee of £1,995 associated with the product, and an incentive package is on offer which includes a free valuation, while those remortgaging may also benefit from free legal fees. Landlords looking for the stability of a longer-term fixed rate may be pleased to note that following the rate cut, this already competitive deal is now even more attractive and receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.14% fixed rate to 30.9.26
  • Product fee: £1,995
  • Maximum loan-to-value: 75%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation, and for those remortgaging, free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain.

 

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

Landlords with 40% deposit or equity available and who are looking to secure a new buy-to-let mortgage may be pleased to see that amongst the products amended by Leeds Building Society this week is a five-year fixed rate. Providing a maximum of 60% loan-to-value, the deal has been reduced by 0.03% and is now priced at 1.83% to 31.7.26. The reasonable fee of £999 remains unchanged and the product continues to offer an incentive package which includes a free valuation, while those remortgaging can also receive help towards costs. Already a strong all-round product for those with the required level of equity or deposit, this improvement in the rate enhances its position and sees it secure an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.83% fixed rate to 31.7.26
  • 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, Northern Ireland, mainland Scotland and Wales.

 

Banking

first direct – 1st Account

first direct has updated the switching incentive on offer on its 1st Account this week. This now offers £125 for accounts switched using the CASS (Current Account Switching Service) when the account is also credited with £1,000 per month for the first three months after opening. Although it is not possible to earn credit interest on this account, it continues to offer a generous £250 interest-free buffer on its arranged overdraft before reverting to a standard 39.9% EAR. As well as providing customers with a good, all-round option, this current account now also offers eligible customers who purchase a new first direct Home Insurance policy before 31st July the potential to receive an eGift card. On balance, the account earns an Outstanding Moneyfacts product rating.

Key product details:

  • Credit interest / reward: None
  • Cashback on debit card purchases: None
  • Account fee: None
  • Credit interest: None
  • Arranged overdraft: £250 interest-free buffer, reverting to a standard 39.9% EAR
  • Opening account: Online and by phone
  • Managing account: Online, in branch, by phone, via mobile app, post office and text alerts
  • Other information: Minimum applicant age 18.

 

Loans

Hitachi – Hitachi Personal Loan

This week, Hitachi has reduced the rate on the top tier of its Personal loan for borrowers looking for an advance of between £7,500 to £25,000. Receiving a cut of 0.4%, borrowing in this tier is now charged at just 2.8% APR. Already an attractive proposition overall, this update ensures that those looking for slightly larger loan amounts could now repay less over the term of the loan for amounts in this bracket. Additionally, successful applicants may also benefit from the fact that there is also the option to make overpayments without incurring an early repayment penalty, and the loan also offers the option to apply for top-ups, the flexibility of which may be appealing to some borrowers. Overall, the product earns an Outstanding 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 and by phone
  • Other information: Minimum age 21. 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. 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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