Moneyfacts Weekly Product News 24 06 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 24/06/2021

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

SmartSave – 1 Year Fixed Rate Saver

This week we saw SmartSave launch a new 1 Year Fixed Rate Saver account which pays an attractive 1.01% on anniversary. Savers who are able to meet the minimum investment amount of £10,000 could well be tempted by the return, as long as they are happy securing their savings pot away for the term of the account because, as is common in the fixed bond market, earlier access is not permitted. However, investors may wish to note that this account will allow further additions to be made within 14-days of opening the account, which could be a plus for some. On assessment the account secures a position in our top rate tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.01% gross / 1.01% AER payable on anniversary
  • Notice / term: One year
  • Minimum opening amount: £10,000
  • Maximum investment amount: £85,000
  • Access: Not permitted
  • Further additions: Permitted within 14-days of account opening
  • Opening account: Online
  • Managing account: Online
  • Other information: Minimum applicant age 18.

 

Close Brothers Savings – 3 Year Fixed Rate Bond

Close Brothers Savings have amended their three year fixed rate bond this week, applying a rate increase of 0.10%. Available to open online, investors who are comfortable locking their savings pot away for the three-year term could be tempted by this bond, which now secures a position in our top rate tables following the rate increase to 1.10% (payable yearly). Savers should note that neither early access nor further additions are permitted on this account, so prior planning before committing would be wise. This account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.10% gross / 1.10% AER payable yearly
  • Notice / term: Three years
  • Minimum opening amount: £10,000
  • Maximum investment amount: £2,000,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: Online and by phone
  • Other information: Minimum applicant age 18. Joint account option available.

 

Mortgages

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

The latest update from TSB sees reductions of as much as 0.40% made across a selection of its fixed rate products. Second-time buyers looking to purchase with a 10% deposit may be pleased to see that the five-year fixed rate option with no fee has taken a cut of 0.30% and is now priced at a competitive 3.39% to 31 August 2026. Although some slightly lower initial rates are available within this 90% loan-to-value sector, the fact that there is a generous incentive package of £500 cashback as well as a free valuation available with this deal, balanced with the lack of fee to pay, ensure that the appeal of this option is enhanced further, particularly for those hoping to keep any outlay on associated mortgage costs to a minimum. Those looking to secure a five-year fixed rate may be pleased to note that this product now earns a position in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.39% fixed rate to 31.8.26
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: Second-time buyers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments, payment holidays considered after one year, subject to approval
  • Lending area: Great Britain.

 

West Brom Building Society – Two-year fixed rate mortgage, 90% loan-to-value

Borrowers looking to buy a home with a 10% deposit and who prefer the shorter initial term of a two-year fixed rate may wish to note that West Brom BS has included a notable rate cut of 0.20% on its 90% loan-to-value product with no fee. Dropping to 3.14% to 31 August 2023, this deal may well attract those who have worked hard to build up their deposit and have little further funds available to cover additional mortgage costs as there is a generous incentive package of £500 cashback as well as a free valuation available with this deal. This, balanced with the lack of fee to pay, ensure that following the rate cut, this becomes an attractive option and earns a place in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.14% fixed rate to 31.8.23
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

Leeds Building Society – Five-year fixed rate mortgage, 85% loan-to-value

Leeds Building Society have made reductions of up to 0.39% across various deals in its residential mortgage range. Borrowers looking to lock-in to the stability of a five-year fixed rate may be pleased to see that amongst the deals to receive a rate cut is the 85% loan-to-value option. Now priced at 2.58% to 31 October 2026 following a cut of 0.10%, this is not the lowest rate currently offered in this sector of the market, however, this deal carries a reasonable £999 fee which can either be paid upfront or added to the advance and is available to both those purchasing or those remortgaging. There is also an incentive package on offer which includes a free valuation, while those remortgaging also receive help towards costs. When assessed on the basis of both the rate and product features, this deal earns an Outstanding Moneyfacts product rating and a place in our top tables.

Key product details:

  • Rate: 2.58% fixed rate to 31.10.26
  • Product fee: £999
  • Maximum loan-to-value: 85%
  • Available to: All borrower types
  • Incentives: Free valuation, and for those remortgaging help towards costs
  • Flexible features: Allows overpayments
  • Lending area: England, Northern Ireland, mainland Scotland and Wales.

 

first direct – Five-year fixed rate mortgage, 60% loan-to-value

Borrowers with 40% equity or deposit may wish to note that first direct have made rate reductions to a number of its products, including the five-year fixed rate at 60% loan-to-value which after a cut of 0.10% is now priced at 1.24%. Available to both those purchasing or remortgaging, this option carries a low fee of £490 and there is also an incentive package attached to the deal which includes a free valuation, with free legal fees available for remortgage customers as well, which may enhance the appeal of this product for those hoping to keep the costs associated with taking on a new mortgage as low as possible. Following the reduction in rate this deal earns a place in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.24% fixed rate for five years
  • Product fee: £490
  • Maximum loan-to-value: 60%
  • Available to: All borrower types
  • Incentives: Free valuation, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.
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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