Moneyfacts Weekly Product News – 25.02.21 | moneyfacts.co.uk

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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Eleanor Williams

Finance Expert & Press Officer
Published: 25/02/2021

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

ICICI Bank UK – SuperSaver Savings Account

Despite ICICI Bank UK making a reduction of 0.10% on its SuperSaver Savings Account this week, now paying 0.50% monthly, this account may well still appeal to savers who wish to maintain flexible access to their savings pot, as this option retains a position in the top rate tables when compared to other similar easy access products currently available. Unlimited withdrawals and further additions are possible, but investors should note that all transactions must be made via a linked ICICI Bank current account. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.50% gross / 0.50% AER, payable monthly
  • Notice / term: None
  • Minimum opening amount: £0
  • Maximum investment amount: No maximum investment
  • Access: Permitted via linked ICICI Bank current account
  • Further additions: Permitted via linked ICICI Bank current account
  • Opening account: Online, by phone or in branch
  • Managing account: Online, by post, in branch and via its app
  • Other information: Minimum applicant age 18, joint account option available, all transactions must be made via linked ICICI Bank current account.

 

Mortgages

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

In addition to making some significant rate reductions on a couple of its products, Leeds Building Society has also launched new five-year fixed rates this week. One of the new offerings is priced at 2.71% until 31 May 2026, which is the lowest rate currently available in the 85% loan-to-value sector for borrowers both purchasing and remortgaging. The appeal of this product is further enhanced by the reasonable fee of £999 (which those hoping to keep any costs to a minimum may be pleased to note can be added to the advance or paid upfront) and an incentive package of free valuation for all borrowers, while those remortgaging can also benefit from help towards costs. On balance, this product achieves a place in our top rate tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.71% fixed rate to 31.5.26
  • Product fee: £999
  • Maximum loan-to-value: 85%
  • Available to: All borrowers
  • Incentives: Free valuation, and for those remortgaging help towards costs
  • Flexible features: Allows overpayments
  • Lending area: England, Wales, mainland Scotland and Northern Ireland.

 

Halifax – Two-year fixed rate mortgage, 75% loan-to-value

In its latest update for lending via intermediaries, Halifax has made rate reductions to the majority of its products for those purchasing a home. Receiving a cut of 0.12%, the two-year fixed rate at 75% loan-to-value is now priced at a highly competitive 1.31%. While there are a couple of products in this intermediary sector of the market available at a slightly lower initial rate, the rival options tend to carry larger fees than the reasonable £999 associated with this deal. Despite having no additional incentive package attached to the product, this deal secures an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.31% fixed rate to 30.6.23
  • Product fee: £999
  • Maximum loan-to-value: 75%
  • Available to: House purchase customers
  • Incentives: None
  • Flexible features: Allows overpayments. Payment holidays considered after one year, subject to approval
  • Lending area: Great Britain & Northern Ireland. Available via intermediaries only.

 

Virgin Money – Five-year fixed rate mortgage, 65% loan-to-value

Virgin Money has made various rate reductions to a selection of its offerings this week, including applying a cut of 0.04% to its five-year fixed rate at 65% loan-to-value. Already the lowest rate within this sector of the market for those looking to purchase a home with the required 35% deposit, this drop in rate further improves the appeal of this product. There is a reasonable fee to pay of £995, which borrowers can either pay upfront or add to the advance, while those wanting to limit any outlay associated with taking on a new mortgage may be pleased to note that an incentive of £300 cashback is available. Overall the deal receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.35% fixed rate to 1.7.26
  • Product fee: £995
  • Maximum loan-to-value: 65%
  • Available to: House purchase customers
  • Incentives: £300 cashback
  • Flexible features: Allows overpayments. Payment holidays considered subject to arrangement
  • Lending area: Great Britain and Northern Ireland.

 

Nationwide – Two-year variable tracker rate mortgage, 60% loan-to-value

The latest update from Nationwide Building Society included selected rate reductions and also the launch of new products at 60% loan-to-value for those who are looking to borrow over £300,000. One new offering that may be of interest to eligible first-time buyers is the 1.29% variable rate for two years. This is the best available on rate alone within this sector and also carries an incentive package of free valuation and £500 cashback. There is a £1,499 fee to pay for this product but there is the option to add this to the mortgage borrowing. Additionally, this is a flexible mortgage that enables unlimited overpayments, which may be of interest to some. Overall, the deal receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.29% variable rate for two years (collared at 1.19%)
  • Product fee: £1,499
  • Maximum loan-to-value: 60%
  • Available to: First-time buyers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows unlimited overpayments. Underpayments considered subject to overpayments having previously been made
  • Lending area: Great Britain and Northern Ireland (excluding Scilly Isles).

 

Banking

TSB – Spend & Save Plus Account

TSB launched its new Spend & Save Plus account this week. The account has a £3 monthly fee, however, customers are able to earn up to £5 cashback when making 30 or more debit card payments via the account each month. An arranged overdraft facility is available at 39.9% APR, with a £100 interest-free buffer, which furthers the appeal of this account and moves it into the top half of the market when compared to other accounts offering overdrafts. In addition to this, an auto-balancer feature is available, which enables a minimum account balance to be set, and should the current account reach that level, money will be pulled from a linked savings pot to top up the current account. Consumers may also wish to note that there are no charges for using the debit card abroad, which may be an added bonus for some. On balance, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Credit interest / reward: None
  • Cashback on debit card purchases: £5 per month when making 30 or more debit card transactions
  • Account fee: £3
  • Credit interest: None
  • Arranged overdraft: £100 interest-free buffer, reverting to 39.9% EAR thereafter
  • Opening account: Online or in branch
  • Managing account: Online, in branch, by phone, via mobile app, post office and text alerts
  • Other information: Minimum applicant age 19.
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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