Moneyfacts Weekly Product News 22 07 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 22/07/2021

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

FCMB Bank (UK) – Raisin UK – 18 Month Fixed Term Deposit

FCMB Bank (UK) has increased the rates on a selection of its Raisin UK – Fixed Term Deposits this week. The 18 Month version now pays 1.05% on maturity and is available to those making minimum investments of £1,000. The account takes a place within the top 10 when compared to other bonds with similar terms currently available. As is common in this sector of the market, neither early access nor further additions are permitted, however, investors happy to put their money away for the term of the account may well be enticed by the competitive return and overall, this account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.05% gross / 1.05% AER payable on maturity (compounded annually)
  • Notice / term: 18 months
  • Minimum opening amount: £1,000
  • Maximum investment amount: £85,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18.

 

Close Brothers Savings – 95 Day Notice Account (Issue 10)

Savers who are happy to give advance notice in order to access their funds may be interested to note the rate increase applied to Close Brothers Savings 95 Day Notice Account. Rising by 0.05% this week, this account now pays 0.72% yearly and takes a place in our top rate tables when compared to other notice products currently on offer. Further additions are allowed, which could suit those hoping to build their savings pot with regular contributions, and savers also have the flexibility to make withdrawals subject to 95 days’ notice being provided, but investors should note that instant access is not available. On assessment this account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.72% gross / 0.72% AER payable yearly
  • Notice / term: 95 days
  • Minimum opening amount: £10,000
  • Maximum investment amount: £2,000,000
  • Access: Permitted, subject to 95 days’ notice
  • Further additions: Permitted
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18. Joint account option available.

 

Secure Trust Bank – 1 Year Fixed Rate Cash ISA

This week Secure Trust Bank has made a number of changes to products in its range, including increasing the rate on its 1 Year Fixed Rate Cash ISA. Investors who are yet to utilise their tax-free savings allowance may be interested to see that this ISA has seen a rise of 0.06% and now pays a market-leading 0.71% yearly. Early access and transfers out are permitted, subject to a 90-day loss of interest penalty, and further additions are possible within 30 days of account opening which, with careful planning, may be of interest to some. Overall, this account receives an Excellent Moneyfacts product rating and assumes the lead position in our top rate tables.

Key product details:

  • Rate: 0.71% gross / 0.71% AER payable yearly
  • Notice / term: One year
  • Minimum opening amount: £1,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted on closure and subject to a 90-day loss of interest penalty
  • Further additions: Permitted within 30 days of account opening
  • Transfers in: Accepts Cash ISAs
  • Transfers out: Permitted, subject to 90-day loss of interest penalty
  • Opening account: Online
  • Managing account: Online and by phone
  • Other information: Minimum applicant age 18.

 

Mortgages

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

Amongst the rate cuts made to a swathe of its higher loan-to-value deals this week, Accord Mortgages has reduced its three-year fixed rate product at 90% loan-to-value. Now priced at 3.13% to 30 September 2024, this product is available via selected intermediaries to borrowers who are remortgaging and who have 10% equity in their home. Whilst there are lower initial rates in this sector of the market, there is a relatively low fee of £495 associated with this product for which there is the choice for borrowers to either pay upfront or add to the mortgage advance. There is also a generous incentive package comprising a free valuation and free legal fees as well as £750 cashback, which could entice borrowers hoping to keep the costs associated with re-financing their home as low as possible. Taking all the features into account, this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.13% fixed rate to 30.9.24
  • Product fee: £495
  • Maximum loan-to-value: 90%
  • Available to: Remortgage customers
  • Incentives: Free valuation, free legal fees and £750 cashback
  • Flexible features: Allows overpayments. Payment holidays and underpayments considered, not to exceed level of overpayments, notice required.
  • Lending area: Great Britain and Northern Ireland. Available via selected intermediaries.

 

Vernon Building Society – Three-year discounted-variable rate mortgage, 80% loan-to-value

Vernon Building Society have made rate cuts to a selection of its discounted variable rate products this week. The three-year deal at 80% loan-to-value saw a notable cut of 0.30% and is now priced at 1.79%. This option is available to both those purchasing or those remortgaging and could tempt borrowers who are looking to keep any outlay on mortgage related costs to a minimum as not only is the rate competitive, but there is no associated fee to pay and borrowers could also benefit from a generous incentive package of a free valuation and £200 towards legal costs. On assessment, this product receives a place in our top rate table for the discount product sector and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.79% discounted variable rate for three years
  • Product fee: None
  • Maximum loan-to-value: 80%
  • Available to: All borrower types
  • Incentives: Free valuation and £200 towards legal fees
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

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

Nationwide Building Society has reduced selected fixed rate products by as much as 0.40% this week. As well as a headline-grabbing sub-1% five-year fixed rate, following a cut of 0.10% Nationwide Building Society now also offer a 1.04% fixed rate for five years at 60% loan-to-value. When assessed as an overall package, this option could be an attractive proposition for those with 40% deposit as it carries a reasonable £999 fee (which borrowers have the option to pay upfront or add to the mortgage advance), and also offers a free valuation incentive which could help to offset some of the outlay in taking on a new mortgage. Taking all the features into account, this deal earns an Outstanding Moneyfacts product rating and a position in our top tables.

Key product details:

  • Rate: 1.04% fixed rate for five years
  • Product fee: £999
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers (remortgage option also available)
  • Incentives: Free valuation and Green reward
  • Flexible features: Allows overpayments. Underpayments subject to overpayments having been made and approval
  • Lending area: Great Britain and Northern Ireland, excluding Scilly Isles.

 

Buy-to-Let Mortgages

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

This week Skipton Building Society made cuts of up to 0.10% across a selection of its fixed rate buy-to-let products. The two-year fixed rate option at 60% loan-to-value which is available to landlords who are both remortgaging or purchasing, saw a reduction of 0.09% and is now priced at 1.52% to 30 September 2023. While there are some slightly lower initial rates offered in this sector at the moment, when considered as a whole, this deal carries a lower fee of £995 when compared to many of its lower rated rivals, and landlords can also benefit from an incentive package of a free valuation, while those remortgaging can also benefit from free legal fees, which could further tempt those looking to keep their outgoings to a minimum. Overall, the reduction in rate enhances the appeal of an already attractive proposition which maintains its position in our top tables and earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.52% fixed rate to 30.9.23
  • Product fee: £995
  • Maximum loan-to-value: 60%
  • 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.

 

Cards

Virgin Money – 19 Month All Round Credit Card Mastercard

Virgin Money has increased the introductory 0% money transfer term from 12 months up to 16 months in its latest update to its 19 Month All Round Credit Card Mastercard, ensuring this becomes one of the best options for customers looking to transfer money interest free for a longer period, although customers should be aware of the 4.00% fee charged for money transferred. Following this update the appeal of this card has been further enhanced as this card continues to offer 0% introductory terms of 19 months for both purchases and balance transfers and holds a position in our top tables for dual offers and for purchase credit cards. Additionally, exclusive offers and rewards may be available on the Virgin Red app, and overall the card earns an Excellent Moneyfacts product rating.

Key product details:

  • Introductory rate for balance transfers: 0% for 19 months
  • Introductory rate for purchases: 0% for 19 months
  • Standard rate for purchases: 21.9% APR
  • Balance transfer fee: 2.90% during first two months of account opening, then 5.00% after first 60 days of account opening
  • Card fee: None
  • Opening method: Online, by phone or in branch
  • Card management: Online, by phone, by post and via its mobile app
  • Other information: Minimum applicant age 18.

 

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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