Moneyfacts Weekly Product News – 25.03.21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 25/03/2021

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 ISA Issue 4

This week, Yorkshire Building Society has launched a new Annual Access Account ISA that pays 0.45% on anniversary. The competitive rate sees this account secure a position in our top rate tables when compared against other variable ISAs currently on offer in the market and could well be an attractive option for those looking to utilise their tax-free ISA allowance. One withdrawal day is permitted per account year while further additions are permitted throughout, so investors would be wise to plan carefully. The account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.45% gross / 0.45% AER variable rate, payable on anniversary
  • Notice / term: Instant
  • Minimum opening amount: £100
  • Maximum investment amount: ISA allowance
  • Access: Permitted (one withdrawal day permitted per account year)
  • Further additions: Permitted
  • Transfers in: Accepts cash or stocks and shares ISAs, Innovative Finance ISAs and Lifetime ISAs (cash or stocks and shares)
  • Transfers out: Permitted (one withdrawal day permitted per account year)
  • Opening account: By post and in branch
  • Managing account: By post and in branch
  • Other information: Minimum applicant age 16, new money to the institution only, flexible ISA rules apply, reverts to an Easy ISA after 12 months.

 

QIB (UK) – Raisin UK – 18 Month Fixed Term Deposit

QIB (UK) has reduced the expected profit rates on its Raisin UK - Fixed Term Deposit accounts by 0.05% this week. Now paying 0.70% on maturity, the 18-month version maintains the lead position in our top rate table when compared against other bonds with similar terms and therefore remains a good choice within its sector. Early access and further additions are not permitted, as is common in the fixed rate market, however, those who have at least £1,000 to invest and who are happy to lock their savings pot away for the 18-month term may find this an appealing option and the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.70% gross / 0.70% AER, payable on maturity
  • 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. Account available via Raisin UK.

 

Mortgages

Vernon Building Society – Two-year discounted variable rate mortgage, 90% loan-to-value

Those looking to purchase a home or to remortgage and who have 10% deposit or equity available may be pleased to see the launch of a new two-year discounted variable rate product from Vernon Building Society this week. Priced and collared at 2.35%, this is the lowest rate currently on offer within this sector of the residential market. The deal carries a reasonable fee of £999, which borrowers can either pay upfront or can opt to add to the advance, which may be of interest to those who wish to keep any outlay on associated mortgage costs to a minimum. Despite the fact there are no incentives currently offered with this product, on assessment, the combination of rate and fee ensures that this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 2.35% discounted variable rate (collared at 2.35%) for two years
  • Product fee: £999
  • Maximum loan-to-value: 90%
  • Available to: All borrower types
  • Incentives: None
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

Stafford Railway Building Society – Three-year discounted variable rate mortgage, 85% loan-to-value

Would-be house purchasers with a 15% deposit may be pleased to note that Stafford Railway Building Society has launched a new discounted variable rate deal at 85% loan-to-value this week. Priced at 2.40% for three years, this product is the lowest rate currently on offer within this sector of the market. While there is no incentive package on offer, this product benefits from carrying only a small application fee of £100. Those who are seeking a competitive rate with low upfront costs may find this an attractive option, which earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.40% discounted variable rate (collared at 1.00%) for three years
  • Product fee: £100
  • Maximum loan-to-value: 85%
  • Available to: House purchase customers
  • Incentives: None
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

Loans

AA – Non-Member Loan

This week, AA has reduced the rates charged on selected tiers of its Non-Member Loan by up to 0.7% APR, ensuring that those looking to borrow amounts of less than £7,499 will now pay less over the term of the loan. Consumers looking to raise between £3,000 and £4,999 will see one of the most significant reductions, with borrowing in this tier now priced at 8.3% APR (previously 8.9%). Additionally, successful applicants are also able to benefit from 12 months’ free basic breakdown cover when they take the loan out, which may be a plus for some. There is an option to make overpayments without an early repayment charge, and loan top-ups are also available, the flexibility of which may be appealing to some borrowers. Overall, the product earns an Excellent Moneyfacts product rating.

Key product details:

  • Representative APR: 8.3%
  • Loan period: Rate shown is based on a term of 60 months for a £3,000 borrowing
  • Application available: Online
  • Other information: Minimum age 21, maximum age at end of loan 70. Minimum income £12,000 per annum. You may be offered an alternative APR dependent on credit rating.
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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