Moneyfacts Weekly Product News – 26.11.20 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 26/11/2020

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

Chorley Building Society – Seasonal Regular Saver

Chorley Building Society has launched a new Seasonal Regular Saver this week. Paying 1.25% on maturity, this variable rate fixed term account compares well when assessed against other regular savings products currently in the market. This may appeal to those who are hoping to initiate a regular savings habit, as they will be able to do so with a maximum monthly deposit amount of £250. Investors should note that earlier access is not permitted on this account, therefore careful planning is advised, and also that all deposits must be new money to the institution. On balance, the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.25% gross / 1.25% AER, payable on maturity, variable rate
  • Notice / term: Fixed term to 30.11.21
  • Minimum opening amount: £1
  • Maximum investment amount: £3,000 
  • Access: Not permitted
  • Further additions: Permitted, up to a maximum of £250 per month
  • Opening account: In branch or by post
  • Managing account: In branch and by post
  • Other information: Minimum applicant age 18. All deposits must be new money to the institution. Joint account option available.

 

Al Rayan Bank – 12-month Fixed Term Deposit

Al Rayan Bank has reduced the rate on its 12-month Fixed Term Deposit account by 0.23% this week. Now paying 0.85% quarterly as an expected profit rate, there is also an option to take the quarterly profit as an income at a reduced rate, which may be of interest to some savers. Despite the reduction, this account maintains a position in our top rate tables and could entice savers who are able to meet the £5,000 minimum investment amount with an attractive return on their investment. As is common in the fixed bond market, earlier access is not permitted, so savers may wish to plan accordingly. The account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.85% gross / 0.85% AER, payable quarterly
  • Notice / term: 12 months
  • Minimum opening amount: £5,000 
  • Maximum investment amount: No maximum investment 
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: By phone, in branch, online or via mobile app
  • Managing account: By phone, in branch, online and via mobile app
  • Other information: Minimum applicant age 16. Sharia-compliant account – rates shown are expected profit rate. Joint account option available.

 

Bank of London and The Middle East – Two-year Premier Deposit Account

Bank of London and The Middle East (BLME) has reduced the rate on its two-year Premier Deposit Account by 0.10% account this week. Now paying 1.10% on anniversary as an expected profit rate, this account continues to feature in our top rate tables and could appeal to savers looking to secure a competitive return on their savings pot and who are happy to lock their money away for the term of the account. Neither early access or further additions are permitted, so savers may wish to plan accordingly. The account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.10% gross / 1.10% AER, payable on anniversary
  • Notice / term: Two years
  • Minimum opening amount: £1,000 
  • Maximum investment amount: £1,000,000 
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: By post
  • Other information: Minimum applicant age 18. Sharia-compliant account – rates shown are expected profit rate. BLME transfer account required. Joint account option available.

 

Mortgages

Skipton Building Society – Two-year variable rate mortgage, 60% loan-to-value

This week sees Skipton Building Society launch two new variable tracker mortgage deals. One of these provides borrowers with up to a maximum of 60% loan-to-value and is priced at 1.57% for two years, currently the lowest initial rate offered in this sector of the market. Available to all borrowers with a reasonable fee of £995, there is the option to add the fee to the advance amount. There is also an incentive package on offer of free valuation, while those remortgaging can benefit from free legal fees, meaning this could be attractive to those with the required 40% deposit or equity who are hoping to keep the cost of setting up a new mortgage deal to a minimum. On balance, the product earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.57% variable tracker rate for two years
  • Product fee: £995, all of which can be added to the advance or paid upfront
  • Maximum loan-to-value: 60%
  • Available to: All borrowers
  • Incentives: Free valuation, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain.
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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