Moneyfacts Weekly Product News – 18.06.2020 | moneyfacts.co.uk

Rachel Springall

Rachel Springall

Finance Expert & Press Officer
Published: 18/06/2020

The Moneyfacts Weekly Product News is a round-up of the latest products or rate changes to hit the consumer finance market this week. The deals are available right now, but may be subject to change. Find the best product for you.

Savings

Shawbrook Bank – Five-year Fixed Rate ISA Bond (Issue 25)

Shawbrook Bank has cut the rate on its five-year fixed rate ISA this week by 0.20%, but it remains a competitive choice. Now paying 1.10% gross on its anniversary, this deal sits towards the top of the five-year fixed arena. Savers who are looking to take full advantage of their ISA allowance and wish to invest over the longer-term may then find this an attractive option, especially if they wish to access their fund early, which it permits, subject to a penalty. Those looking to supplement their income could find monthly interest option appealing too. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.10% gross / 1.10% AER, payable on anniversary, monthly option of 1.09% gross / 1.10% AER available
• Notice / term: Five years
• Minimum opening amount: £1,000
• Maximum investment amount: ISA allowance
• Access: Permitted subject to a 360-day loss of interest penalty
• Further additions: Permitted while the issue remains open
• Transfers in: Accepts cash and stocks and shares ISAs
• Opening account: Online
• Managing account: Online and by phone
• Other information: Minimum applicant age 18.



United Trust Bank – ISA 7 Year Bond

This week, United Trust Bank has retained a position in the top rate tables with its seven-year fixed ISA, despite a rate cut of 0.15%. Now paying 1.35%, this deal may attract savers who are searching for a competitive return on their cash over the longer-term with an ISA. Savers must be satisfied with the length of the term and their initial deposit as further additions are not permitted and earlier access is only allowed subject to an interest penalty. The deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.35% gross / 1.35% AER, payable on its anniversary
• Notice / term: Seven years
• Minimum opening amount: £15,000
• Maximum investment amount: ISA allowance
• Access: Permitted subject to an interest penalty
• Further additions: Not permitted
• Transfers in: Accepts cash and stocks and shares ISAs
• Opening account: By post
• Managing account: By post and by phone
• Other information: Minimum applicant age 18.



HSBC – MySavings Account

HSBC has reduced the rate on its children’s MySavings account this week by 0.49%, which now pays 2.47% yearly. Despite the reduction, this account still secures a competitive position within the top of the market compared to similar children's accounts. Parents or guardians who open the account will also receive a free moneybox. The deal earns a Moneyfacts product rating of Excellent.

Key product details:
• Rate: 2.47% gross / 2.50% AER, payable monthly, rate payable from £10 up to £3,000 (0.25% payable for deposits above)
• Notice / term: Instant
• Minimum opening amount: £10
• Maximum investment amount: None
• Access: Permitted
• Further additions: Permitted
• Opening account: In branch
• Managing account: Online, in branch, by phone or mobile app
• Other information: Maximum applicant age 17, application signed by parent/guardian for under 16s. Free moneybox available on account opening. A signature of a parent or guardian is required for withdrawals of £50 or over for under 11s. MyAccount current account opened on 11th birthday. Internet and mobile app operation are available once the MyAccount opened.

 

Mortgages

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

Saffron Building Society has launched a new five-year fixed rate mortgage aimed at first-time buyers this week, improving the choice of deals in this limited sector of the market. Priced at 3.27% to 30.11.25, the deal includes an attractive incentive package of free valuation and carries a low fee of £180. Available via intermediaries only, first-time buyers with a 5% deposit may well find this an enticing option, particularly if they are looking to save on the upfront cost of their mortgage. As a result, the deal earns a Moneyfacts product rating of Excellent.

Key product details:
• Rate: 3.27% fixed rate to 30.11.25
• Product fee: £180 payable upfront
• Maximum loan-to-value: 95%
• Available to: First-time buyers
• Incentives: Free valuation
• Flexible features: Allows overpayments
• Lending area: England and Wales, deal is available via intermediaries.

Accord Mortgages – Five-year fixed rate mortgage, 90% loan-to-value

This week, Accord Mortgages have launched a new five-year fixed rate mortgage aimed at first-time buyers, a positive boost to this area of the mortgage market. Priced at 3.09% to 30.9.25, the deal does not charge a product fee and carries an incentive package of a free valuation. Available via selected intermediaries only, borrowers with the required 10% deposit and who are looking for an enticing package could find this an attractive choice. As a result, the deal earns a Moneyfacts product rating of Excellent.

Key product details:
• Rate: 3.09% fixed rate to 30.9.25
• Product fee: None
• Maximum loan-to-value: 90%
• Available to: First-time buyers
• Incentives: Free valuation
• Flexible features: Allows overpayments, underpayments and payment holidays permitted up to the level of previous overpayments
• Lending area: Great Britain, deal is available via selected intermediaries.

Cards

Virgin Money – 26 Month Balance Transfer Credit Card Mastercard

Virgin Money has followed suit in the trend to reduce interest-free offers this week, as it has trimmed its introductory 0% balance transfer deal down by one month to 26 months. The card still offers a competitive deal in the market despite the reduction and may well entice borrowers looking to consolidate their debts. Any transfers within the first two months will be subject to a lower transfer fee of 3%, thereafter rising to 5%, so it would be wise for borrowers to keep this in mind. As an additional sweetener, customers can earn cashback via the Virgin Money Back scheme. Overall, this card earns an Excellent Moneyfacts product rating.

Key product details:
• Introductory rate for purchases: 0% for three months
• Introductory rate for balance transfers: 0% for 26 months
• Standard interest rate for purchases: 21.9% APR
• Balance transfer fee: 3.00% during the first two months from account opening, 5.00% thereafter
• Card fee: N/A
• Opening method: Online and in branch
• Card management: Online, by phone, by post and via its app


• Other information: Minimum age 18, minimum income £7,000, ability to earn cashback on online purchases via Virgin Money Back and exclusive offers and rewards on the Virgin Red app

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.

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