Moneyfacts Weekly Product News – 18.03.21 | moneyfacts.co.uk

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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Eleanor Williams

Finance Expert & Press Officer
Published: 18/03/2021

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

West Brom Building Society – 2 Year Fixed Rate ISA

This week sees West Brom Building Society increase rates across its fixed rate bonds and ISAs by up to 0.10%. One of the accounts to see this rise is the two-year Fixed Rate ISA, which already had a place in our top rate tables when compared to other ISAs with similar terms, and following this update assumes the lead position, now paying 0.70% yearly. This account may well be attractive to those looking to utilise their tax-free ISA allowance, especially considering that this account may allow early access subject to a notice period or a loss of interest penalty, which may be a plus for some. Furthermore, further additions are permitted while the issue remains open, which with careful planning may also be a positive. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.70% gross / 0.70% AER payable yearly
  • Notice / term: To 5.4.23
  • Minimum opening amount: £1,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted, subject to 90 days’ notice or loss of interest penalty
  • Further additions: Permitted while the issue remains open
  • Transfers in: Accepts cash or stocks and shares ISAs, Innovative Finance ISAs, Help to Buy ISAs and Lifetime ISAs (cash or stocks and shares)
  • Transfers out: Permitted, subject to 90 days’ notice or loss of interest penalty
  • Opening account: In branch
  • Managing account: In branch
  • Other information: Minimum applicant age 16.

 

Gatehouse Bank – Fixed Term Green Saver

Savers who are happy to secure their funds away for a fixed period may be interested to see that despite reducing the expected profit rate to 0.89% this week, Gatehouse Bank’s three-year Fixed Term Green Saver still maintains a position in the top rate tables when compared to other bonds with similar terms. 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 support sustainable principles. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.89% gross / 0.89% 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: Online
  • Other information: Minimum applicant age 18, joint account option available.

Mortgages

Accord Mortgages – Five-year fixed rate mortgage, 95% loan-to-value

First-time buyers with a 5% deposit may well be delighted to see that Accord Mortgages is the first lender to return new business 95% loan-to-value mortgages that are not linked to any schemes, or restricted by location in England, Scotland and Wales. The deal offers a five-year fixed rate of 3.99%, and carries a reasonable fee of £995, which can be added to the advance. Furthermore, those who have limited funds available to cover the costs associated with a new mortgage may be further pleased to see that there is also an incentive available of a free valuation. Considering the limited choice in this sector, it is fantastic to see an option come to market through intermediaries only.

Key product details:

  • Rate: 3.99% fixed rate to 30.6.26
  • Product fee: £995
  • Maximum loan-to-value: 95%
  • Available to: First-time buyers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments. Underpayments and payment holidays considered, subject to level of overpayments previously made
  • Lending area: Great Britain. Available via intermediaries only.

 

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

Those with 20% deposit or equity and who are looking to either purchase or remortgage may be pleased to note that Nottingham Building Society included a rate reduction of 0.05% to its two-year fixed deal at 80% loan-to-value in its latest update. Now priced at 2.25% to 30.6.23, while not the lowest rate currently available in this sector of the market, borrowers who are hoping to keep any outlay for a new mortgage deal as low as possible should note that this product not only carries no fee, but also offers an incentive package that could help keep upfront costs to a minimum. On assessment, this therefore ensures it is a very competitive deal in the intermediary market and it earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 2.25% fixed rate to 30.6.23
  • Product fee: None
  • Maximum loan-to-value: 80%
  • Available to: All borrowers
  • Incentives: Free valuation and for those remortgaging free legal fees
  • Flexible features: Allows overpayments
  • Lending area: England and Wales. Available via intermediaries only.

 

HSBC – Five-year fixed rate mortgage, 75% loan-to-value

HSBC has made rate reductions of up to 0.10% across a selection of its fixed rate mortgages this week. The standard five-year fixed option at 75% loan-to-value is one of the products to see this rate cut, now priced at just 1.59% to 31.5.26, and is available to both those purchasing or looking for a competitive remortgage deal. Now the lowest rate on offer in this sector of the market, this may appeal to those who are looking to secure the longer-term stability of a five-year fixed rate. This option further benefits from a reasonable fee of £999 and an incentive package that includes a free valuation for all borrowers while those remortgaging can receive free legal fees. Overall, this secures an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.59% fixed rate to 31.5.26
  • Product fee: £999
  • 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.

Buy-to-Let Mortgages

Principality Building Society – Two-year fixed rate mortgage, 60% loan-to-value

Among various updates to its buy-to-let range this week, Principality Building Society has launched a number of new deals. One of these provides a maximum of 60% loan-to-value and is available at a rate of 1.52% to 31.8.23. This competitive product sits just slightly above the lowest rates currently offered within this sector of the market, however, this deal benefits from a very reasonable fee of just £895, while there is also the option to add this to the mortgage advance. Additionally, borrowers can also benefit from the incentive of a free valuation, which may be of interest to those hoping to keep any outlay associated with a new buy-to-let mortgage to a minimum. This product may therefore appeal for borrowers looking for a competitive package and earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.52% fixed rate to 31.8.23
  • Product fee: £895
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage borrowers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.
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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