Moneyfacts Weekly Product News 27 05 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 27/05/2021

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 – 2 Year Fixed Rate Saver

SmartSave has increased the rate payable on its 2 Year Fixed Rate Saver account this week. Rising by 0.07% to now pay 0.97% on anniversary, this update sees this account propelled further up the top rate table when compared to other bonds with similar terms currently on offer. This bond could be attractive to savers who are able to meet the £10,000 minimum investment amount due to the attractive return. As is common in the fixed bond market, early access is not permitted, however, some investors may wish to note that that further additions can be made within 14-days of opening the account, which may be a plus for some. On assessment this account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.97% gross / 0.97% AER payable on anniversary
  • Notice / term: Two years
  • 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.

 

UBL UK – 3 Year Fixed Term Deposit

This week, UBL UK has increased the rates on a selection of its Fixed Term Deposits by up to 0.48%. One option which may be of particular interest to investors who are happy to lock their savings pot away for the medium-term is the 3 Year Fixed Term Deposit. Now paying 1.11% gross on maturity, this deal also offers an interest paying option on anniversary of 1.10% gross, while savers looking to supplement their income may wish to note there is also a monthly option paying 1.09%. Investors should ensure they are comfortable with their initial investment though, as although early access is permitted, it is at the discretion of the bank and is subject to a 270-day loss of interest penalty. This update sees this account rise towards the top of our tables when compared to other bonds with similar terms and receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.11% gross / 1.10% AER payable on maturity, anniversary option available paying 1.10% gross / 1.10% AER payable, monthly interest option also available of 1.09% gross / 1.10% AER.
  • Notice / term: Three years
  • Minimum opening amount: £2,000
  • Maximum investment amount: £1,000,000
  • Access: Permitted at the bank’s discretion, subject to 270-day loss of interest penalty
  • Further additions: Not permitted
  • Opening account: In branch, by post and via its mobile app
  • Managing account: Online, by phone, by post, in branch and via its mobile app
  • Other information: Minimum applicant age 18. Joint account option available.

 

Close Brothers Savings – 5 Year Fixed Rate Cash ISA

Amongst other updates to its range of savings products this week, Close Brothers Savings has increased the rate payable on its five-year ISA. Now paying 1.11% on anniversary, investors who are looking to utilise their tax-free savings allowance may be pleased to see that this account has improved on its position in the top 10 when compared against other similar products. Early access is only available on closure and is subject to a 365-day loss of interest penalty, so careful planning would be advised,, however, further additions can be made within 10-days of account opening, which may be a benefit for some investors. This ISA secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.11% gross / 1.11% AER payable on anniversary
  • Notice / term: Five years
  • Minimum opening amount: £10,000
  • Maximum investment amount: ISA allowance
  • Access: Permitted, on closure only, subject to 365-day loss of interest penalty
  • Further additions: Permitted within 10-days of account opening
  • Transfers in: Transfer instructions must be received within 10 days of account opening. Accepts cash and stocks & shares ISAs.
  • Transfers out: Permitted, subject to 365-day loss of interest penalty
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18.

 

Mortgages

Coventry Building Society – Five-year fixed rate mortgage, 95% loan-to-value

This week Coventry Building Society have launched a new two-year fixed rate product at 95% loan-to-value, while also making reductions of 0.10% to its five-year fixed rate products in this lending tier. The five-year option which carries a £999 fee is now priced at 3.79% to 30.6.26, one of the lowest initial rates available in this sector of the market. Those who are hoping to keep any mortgage set up costs to a minimum may be pleased to see that the reasonable fee can be added to the advance, while an incentive of a free valuation is also available to borrowers. Available to those purchasing, this deal earns a position in our top rate tables due to the combination of an attractive initial rate, balanced against a reasonable fee and an incentive, receiving an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.79% fixed rate to 30.6.26
  • Product fee: £999
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain.

 

HSBC – Two-year fixed rate mortgage, 90% loan-to-value

HSBC have applied rate cuts of up to 0.20% across its fixed rate deals at 85% and 90% loan-to-value this week. Borrowers looking to purchase or remortgage with 10% deposit or equity available, and who are looking for the short-term stability of a two-year fixed rate, may be tempted by the now reduced fixed rate deal, priced at 3.09% to 31.8.23. While slightly lower initial rates may be available elsewhere in this sector of the market, there is no fee to pay for this product, which may be particularly appealing to those who need to keep any outlay associated with a new mortgage as low as possible, as may the incentive package available with this deal which comprises of a free valuation for all borrowers, while those remortgaging can also benefit from free legal fees. Assessed on rate and product features, this option earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.09% fixed rate to 31.8.23
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: All borrowers
  • Incentives: Free valuation and for those remortgaging, free legal fees
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland

 

Leeds Building Society – Five-year fixed rate mortgage, 80% loan-to-value

Borrowers who are looking for a five-year fixed rate at 80% loan-to-value may be pleased to note that Leeds Building Society has included a rate cut of 0.05% on its offering this week. Now priced at 2.13% to 31.7.26, there is a reasonable fee of £999 to pay, which borrowers have the option to pay upfront or add to the mortgage advance. An incentive package is also on offer with this deal, including a free valuation for all borrower types, whilst those remortgaging can also benefit from help towards costs. Overall, this product receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 2.13% fixed rate to 31.7.26
  • Product fee: £999
  • Maximum loan-to-value: 80%
  • 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.

 

Buy-to-Let Mortgages

Barclays Mortgage – Five-year fixed rate mortgage, 75% loan-to-value

Barclays Mortgage has introduced a handful of fixed rates at 75% loan-to-value in its latest update of its buy-to-let mortgage range. One of the new options is available to investors purchasing a property and is priced at 2.15% to 31.8.26. This sits close to the lowest rates currently on offer within this sector of the market. There is a fee of £1,295 to be paid and while there are no additional incentives on offer with the deal, when considered against other similar products available, this earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.15% fixed rate to 31.8.26
  • Product fee: £1,295
  • Maximum loan-to-value: 75%
  • Available to: House purchase customers
  • Incentives: None
  • Flexible features: Allows overpayments
  • Lending area: Great Britain & Northern Ireland.

 

Skipton Building Society – Variable tracker rate mortgage, 60% loan-to-value

In its latest update, Skipton Building Society has amended the rates on many of its buy-to-let products. One deal to see a rate reduction is the variable tracker deal at 60% loan-to-value. Already an attractive proposition for landlords with the required level of deposit or equity, following the cut of 0.12%, this is now priced at 1.85% for two years. There is a reasonable fee of £995 which can be added to the advance or paid upfront, and investors could also benefit from an incentive of a free valuation, while those remortgaging may also receive free legal fees, which may be of interest to those who are hoping to keep any outlay for setting up a new buy-to-let mortgage to a minimum. Overall, the deal receives an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.85% variable tracker rate for two years
  • Product fee: £995
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • 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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