Moneyfacts Weekly Product News 22 04 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 22/04/2021

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

Yorkshire Building Society – Annual Access Account Issue 8

Amongst various updates to its range of savings products, Yorkshire Building Society has reduced the rate on its Annual Access Account by 0.05%. Now paying 0.45% on anniversary, this product retains its position in our top rate tables when compared to other easy access products currently available. The account can be opened in trust for those under the age of 11 and has a minimum investment amount of £100. Savers may well be tempted by the competitive return, but should note that while further additions are permitted, access is permitted on only one withdrawal day per anniversary year, therefore careful planning is recommended. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.45% gross / 0.45% AER, payable on anniversary
  • Notice / term: Instant
  • Minimum opening amount: £100
  • Maximum investment amount: £2,000,000
  • Access: Permitted on one withdrawal day per anniversary year
  • Further additions: Permitted
  • Opening account: In branch or by post
  • Managing account: Online, in branch or by post
  • Other information: Account can be opened in trust for under 11’s. New money to institution only. Reverts to Easy Saver after 12 months.

Atom Bank – 1 Year Fixed Saver

This week Atom Bank has made rate increases on a selection of its Fixed Savers. The 1 Year option now pays 0.62% on anniversary, while savers who are looking to boost their income may be pleased to note that there is also the facility to take a monthly interest option. Following the update this account assumes a position in our top rate tables when compared to other bonds with similar terms. As is common with fixed products earlier access is not permitted, therefore investors need to ensure they are comfortable to secure their funds for the account’s term, however, further additions can be made to the account for one week from opening. On balance, the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.62% gross / 0.62% AER payable on anniversary, monthly interest option of 0.62% gross / 0.62% AER
  • Notice / term: One year
  • Minimum opening amount: £50
  • Maximum investment amount: £100,000
  • Access: Not permitted
  • Further additions: Permitted for one week from account opening
  • Opening account: Via its app
  • Managing account: Via its app
  • Other information: Minimum applicant age 18.

Mortgages

Lloyds Bank – Two-year fixed rate mortgage, 95% loan-to-value

In addition to making reductions to a selection of its deals, this week Lloyds Bank have launched new mortgage guarantee scheme products, enabling house purchase customers to borrow between 90% and 95% loan-to-value. One of their new offerings is a two-year fixed rate priced at a competitive 4.00%. While this is not the lowest rate on offer within this still limited sector of the market, there is no fee to pay for this deal and borrowers can also benefit from a generous incentive package comprising a free valuation and free legal fees, which may be interesting for those looking to keep any outlay on setting up their mortgage to a minimum. On assessment, this product earns a place within our top rate tables for first-time buyers and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 4.00% fixed rate to 31.8.23
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation and free legal fees
  • Flexible features: Allows overpayments. After one year payment holidays can be considered, subject to approval
  • Lending area: Great Britain and Northern Ireland.

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

Santander has refreshed its mortgage range this week, making various updates and launching new deals. One product which was amongst those to see a rate reduction is the five-year fixed rate at 90% loan-to-value for those looking to purchase a home. Dropping by 0.04% to 3.39% moves this option closer to the lowest rates on currently offer for those with 10% deposits. When taking into account the reasonable fee charged of £999, borrowers will have the option to add that to the advance or to pay upfront. Those hoping to keep any costs to a minimum, they may be further pleased to note the generous incentive package of a free valuation and £250 cashback. Overall, this deal receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.39% fixed rate to 2.8.26
  • Product fee: £999
  • Maximum loan-to-value: 90%
  • Available to: House purchase customers
  • Incentives: Free valuation and £250 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

Buy-to-let Mortgages

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

Santander has made rate reductions of up to 0.14% across a selection of its buy-to-let mortgage deals this week. Receiving a cut of 0.07% is the two-year fixed rate at 60% loan-to-value. Now priced at 1.33% and available via intermediaries, this reduction improves on an already attractive package. There is a fee of £1,499 which can be paid upfront or added to the advance, and there is a generous incentive package in place as well. Following this update the deal improves on its position within our top rate tables, and landlords with sufficient equity or deposit may be pleased to note that this option receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.33% fixed rate to 2.8.23
  • Product fee: £1,499
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation (or £95 towards in Scotland) and for those remortgaging, either free legal fees or £250 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland. Available via Intermediaries.
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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