Moneyfacts Weekly Product News – 23.07.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 23/07/2020

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

United Trust Bank – UTB 15 Month Bond

This week, United Trust Bank has revamped its range of savings products, which has included the launching of a new 15-month bond. Paying 0.95% on anniversary, this account gains a position in the top 10 when compared against other bonds with similar terms that are currently available. As is typical in the fixed account market, earlier access and further additions are not permitted, therefore investors need to feel comfortable that they can commit to the full 15-month term. For those looking for a competitive return over the shorter-term, this account offers a competitive option and on balance earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.95% gross / 0.95% AER, payable on anniversary
• Notice / term: 15 months
• Minimum opening amount: £5,000
• Maximum investment amount: £1,000,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: By phone and by post
• Other information: Minimum applicant age 18.


Newcastle Building Society – One Year Fixed Rate ISA (Issue 33)

Newcastle Building Society has launched both new fixed rate bonds and fixed rate ISAs this week. One Year Fixed Rate ISA pays 0.65% on maturity and assumes a position in the top rate tables when compared to other similar fixed ISAs currently on offer in the market. This account also offers a monthly interest option, which may appeal to those looking to supplement their income. This deal may entice savers who are looking to take full advantage of their ISA allowance. Additionally, and unusually for the fixed rate ISA sector, earlier access is permitted, subject to a loss of interest penalty. Further additions can also be made while the issue remains open, which some savers may view as a further plus. Overall, the deal earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 0.65% gross / 0.65% AER, payable on maturity, monthly option of 0.65% gross / 0.65% AER available
• Notice / term: One year
• Minimum opening amount: £500
• Maximum investment amount: ISA allowance
• Access: Permitted subject to a 60-day loss of interest penalty
• Further additions: Permitted while the issue remains open
• Transfers in: Accepts cash, stocks and shares, Help to Buy, Innovative Finance and Lifetime ISAs
• Opening account: Online and in branch
• Managing account: Online, by phone, in branch and by post
• Other information: Minimum applicant age 16.

Mortgages

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

Among a number of updates to its range, Accord Mortgages has slightly increased the rate payable on its five-year fixed deal at 75% loan-to-value for house purchase customers via selected intermediaries. Following the increase of 0.02%, and now priced at 1.85% to 30.11.25, this deal moves slightly further away from the lowest rates currently offered in this sector of the market. However, those lower-rate options typically charge a larger fee than the £495 that is payable for this deal. Additionally, this product carries a generous incentive package of free valuation and £500 cashback, which those consumers looking to keep their set-up costs low may appreciate. Overall, despite the rate increase, this remains an attractive option and earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.85% fixed rate to 30.11.25
• Product fee: £495
• Maximum loan-to-value: 75%
• Available to: House purchase customers
• Incentives: Free valuation and £500 cashback
• Flexible features: Allows overpayments, underpayments and payment holidays permitted up to the level of previous overpayments
• Lending area: Great Britain and Northern Ireland. Available via selected intermediaries only.

Marsden Building Society – Two-year fixed rate mortgage, 85% loan-to-value

This week has seen Marsden Building Society launch a new fixed rate deal at 85% loan-to-value. This deal carries no fee and borrowers will also benefit from a comprehensive incentive package of a free valuation for all borrowers, with those remortgaging being eligible for free legal fees. Although slightly lower rates can be found elsewhere within this sector of the market, the combination of competitive rate, no fee and a generous incentive package make this an attractive all-round proposition and sees this product earn an Outstanding Moneyfacts product rating.

Key product details:
• Rate: 1.89% fixed rate to 30.9.22
• Product fee: None
• Maximum loan-to-value: 85%
• Available to: All borrowers
• Incentives: Free valuation for all borrowers and for those remortgaging free legal fees
• Flexible features: Allows overpayments
• Lending area: England and Wales.


Nationwide Building Society – Three-year fixed rate mortgage, 90% loan-to-value

Nationwide Building Society has this week re-entered the 90% loan-to-value sector with deals for first-time buyers. One of these is a 2.99% fixed for three years, which is currently one of the lowest rates on offer within this limited sector of the market. Carrying no fee and also providing new borrowers with a generous incentive package of both a free valuation and £500 cashback, this is an appealing option that will aid consumers who need to keep any associated mortgage set-up costs as low as possible. Taking the features into account, this deal earns an Outstanding Moneyfacts product rating.

Key product details:
• Rate: 2.99% fixed rate for three years
• Product fee: None
• Maximum loan-to-value: 90%
• Available to: First-time buyers only
• Incentives: Free valuation and £500 cashback
• Flexible features: Allows overpayments and underpayments permitted up to the value of previous overpayments
• Lending area: Great Britain and Northern Ireland (excluding Scilly Isles).

 

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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