Moneyfacts Weekly Product News 28 06 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 01/07/2021

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

Vanquis Bank – 2 Year Vanquis Bank Savings

Vanquis Bank has increased the rates across a selection of its Vanquis Bank Savings accounts by up to 0.25% this week. One option which savers may wish to note is the two-year fixed rate account which saw an uplift of 0.11% and now offers a return of 1.12% on anniversary. Following the rate increase the account takes a position in our top rate tables and could be tempting for those hoping to secure a competitive return. While neither earlier access nor further additions are possible on this account, this bond does offer a monthly interest option, which could be tempting for those looking to bolster their income. Overall, the account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.12% gross / 1.12% AER payable on anniversary, monthly interest option of 1.11% gross / 1.12% AER also available
  • Notice / term: Two years
  • Minimum opening amount: £1,000
  • Maximum investment amount: £250,000
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18. Joint account option available.

 

Coventry Building Society – Limited Access Saver (4)

This week Coventry Building Society has launched a Limited Access Saver account which pays an attractive rate of 0.50% on anniversary and can be opened with minimum investment amounts of just £1. This account allows six penalty-free withdrawals per annum, with any subsequent withdrawals subject to 50-days loss of interest, ensuring that with careful planning, this may suit those hoping to maintain some access to their savings pot during these unpredictable times. Additionally, there is a monthly interest option available, which could be of benefit to those hoping to supplement their income. On assessment, the account secures a position in our top rate tables and earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.50% gross / 0.50% AER payable on anniversary, monthly interest option of 0.50% gross / 0.50% AER also available
  • Notice / term: Instant
  • Minimum opening amount: £1
  • Maximum investment amount: £250,000
  • Access: Six penalty free withdrawals permitted per annum, further withdrawals subject to 50-day loss of interest penalty
  • Further additions: Permitted
  • Opening account: Online, by phone, by post and in branch
  • Managing account: Online, by phone, by post and in branch
  • Other information: Minimum age 16 to open statement-based version. Joint account option available.

 

Marcus by Goldman Sachs® – Cash ISA

Marcus by Goldman Sachs® has increased the rates on its Online Savings Account and also on its Cash ISA this week, by adding an introductory bonus rate of 0.10%, which is applied for 12 months. Now paying a rate of 0.50% monthly (inclusive of the bonus rate), the deal moves up the top rate table when compared to other variable rate ISAs currently on offer. This account could well be an attractive option for savers looking to utilise their tax-free savings allowance and to those who are looking to keep access to their savings pot, as access is permitted and unrestricted. However, the bonus will expire after 12 months, so investors may wish to schedule a review for this time as the rate will drop. Overall, this ISA earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.50% gross / 0.50% AER payable monthly, (0.10% of which is a bonus that expires after 12 months)
  • Notice / term: None
  • Minimum opening amount: £0
  • Maximum investment amount: ISA allowance
  • Access: Permitted via a nominated account
  • Further additions: Permitted via a nominated account
  • Transfers in: Not permitted
  • Transfers out: Permitted
  • Opening account: Online and via its mobile app
  • Managing account: Online, by phone and via its mobile app
  • Other information: Minimum age 18. UK mobile phone number required to apply.

 

Mortgages

Nationwide – Two-year fixed rate mortgage, 95% loan-to-value

First-time buyers looking to get onto the property ladder with a 5% deposit may be interested to see that Nationwide BS has made various rate reductions this week, including applying a 0.15% cut to its two-year fixed rate option with no fee at 95% loan-to-value. Already a deal which may be attractive to those with little spare funds to meet the costs associated with taking out a mortgage, added to the fact that there is no fee to find with this deal, there is also a very generous incentive package on offer comprising a free valuation and also £500 cashback. Therefore, following the substantial rate cut, while this is not the lowest initial rate on offer in this sector, when one considers the combination of rate, lack of fee and the incentive package on offer, this deal earns a position in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.64% fixed rate for two years
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: First-time buyers
  • Incentives: Free valuation, £500 cashback and Green reward
  • Flexible features: Allows overpayments, underpayments considered, subject to approval and overpayments having been made
  • Lending area: Great Britain and Northern Ireland (excludes Scilly Isles).

 

Hinckley & Rugby Building Society – Two-year fixed rate mortgage, 80% loan-to-value

Hinckley & Rugby Building Society have launched a number of new deals this week, including a two-year discounted-variable rate option at 80% loan-to-value. Priced at a competitive 1.60%, there are slightly lower initial rates on offer within this sector, however, this product charges a lower fee than its rivals of just £199. Borrowers considering a variable rate may also wish to note that the appeal of this deal is further enhanced by the incentive package on offer, comprising of a free valuation for all, while those remortgaging can also receive £250 cashback, which may tempt those looking to keep their outgoings for a new mortgage as low as possible. Overall, the deal receives an Outstanding Moneyfacts product rating and a place in our top tables.

Key product details:

  • Rate: 1.60% discounted variable rate for two years
  • Product fee: £199
  • Maximum loan-to-value: 80%
  • Available to: All borrower types
  • Incentives: Free valuation, and for those remortgaging £250 cashback
  • Flexible features: Allows overpayments.
  • Lending area: England and Wales.

 

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

The latest update from TSB sees selected initial rates cut by as much as 0.50% this week. One option which may be of interest to those with a 40% deposit and who are looking for the ability to budget and protection from potential future interest rate rises that a five-year fixed rate can provide is the deal available at 60% loan-to-value. Carrying a reasonable £995 fee, this product took a cut of 0.30% and is now priced at 1.09% to 31 August 2026. Not only is this one of the lowest initial rates currently offered in its sector, but borrowers can also benefit from a free valuation incentive, which could be of particular interest to those with little extra funds available to meet additional mortgage costs. Taking into account the low rate as well as the features of the deal, this option receives an Outstanding Moneyfacts product rating and a position in our top rate tables.

Key product details:

  • Rate: 1.09% fixed rate to 31.8.26
  • Product fee: £995
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyer
  • Incentives: Free valuation
  • Flexible features: Allows overpayments. Payment holidays considered after one year, subject to approval
  • Lending area: Great Britain.

Buy-to-Let Mortgages

Leek United Building Society – Two-year discounted-variable rate mortgage, 75% loan-to-value

Leek United Building Society has added a new two-year discounted variable rate to its buy-to-let range this week. Available at 75% loan-to-value, this product is priced at 1.76% for two-years. This is the lowest initial rate available within this sector of the market, but its appeal is boosted further by the fact that there is no arrangement fee payable and there is also a free valuation included. When assessed on both the low rate, lack of fee and incentive available, this deal earns an Outstanding Moneyfacts product rating and a place in our top tables.

Key product details:

  • Rate: 1.76% discounted variable rate for two years
  • Product fee: None
  • Maximum loan-to-value: 75%
  • Available to: All borrower types
  • Incentives: Free valuation
  • Flexible features: Allows overpayments
  • Lending area: England and Wales

 

Santander – Two-year fixed rate mortgage, 60% loan-to-value

In its latest update Santander has reduced rates on a selection of its buy-to-let mortgage products. Landlords with sufficient equity or deposit may wish to note that the two-year fixed rate at 60% loan-to-value has taken a cut of 0.08%, seeing this deal drop to 1.25% to 2 October 2023. Available via intermediaries and offering one of the lowest rates in this sector of the market, this product is available to both those purchasing or remortgaging a rental property. There is a fee of £1,499 which can either be added to the advance or paid upfront and the deal also continues to offer a generous incentive package to borrowers. Following the cut in rate, this product improves on its position in our top tables to Intermediaries and earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.25% fixed rate to 2.10.23
  • Product fee: £1,499
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation (or £95 towards valuation in Scotland), and for those remortgaging, free legal fees or £250 cashback
  • 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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