Moneyfacts Weekly Product News 29 07 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 29/07/2021

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

United Trust Bank – UTB 15 Month Bond

Savers who are happy to secure their savings pot away for a set period may wish to note that United Trust Bank has increased the rate payable on its UTB 15 Month Bond. Now paying 1.05% on anniversary, this account takes a position within our top rate table when compared to other bonds with similar terms currently available. As is common in this sector of the market, neither early access nor further additions are permitted, so investors should ensure they are confident they can commit at the outset. This account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 1.05% gross / 1.05% AER payable on anniversary
  • Notice / term: 15 months
  • Minimum opening amount: £5,000
  • Maximum investment amount: £1,000,000
  • 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.

 

Hampshire Trust Bank – 95 Day Notice (Issue 11)

Amongst various updates to its range of savings products this week, Hampshire Trust Bank has increased the rate on its 95 Day Notice account. Following an uplift of 0.05%, this account now pays 0.85% on anniversary, an update which propels the account to the lead position in our top rate tables when compared to other notice products currently on offer. Investors who are happy to plan ahead and provide advance notice if they want to access their savings could well be tempted by the return as, whilst instant access is not possible, with 95-days notice withdrawals are permitted. Additionally, this account could also be suitable for those who wish to be able to contribute further deposits and build their nest egg. On assessment the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.85% gross / 0.85% AER payable anniversary
  • Notice / term: 95 days
  • Minimum opening amount: £1
  • Maximum investment amount: £250,000
  • Access: Permitted, subject to 95 days’ notice
  • Further additions: Permitted
  • Opening account: Online
  • Managing account: Online, by phone and by post
  • Other information: Minimum applicant age 18. Joint account option available.

 

Tesco Bank – Internet Saver

Amongst the accounts from Tesco Bank to receive a rate uplift this week is the Internet Saver which has increased from 0.41% and now pays a rate of 0.50% yearly (inclusive of 0.40% bonus rate for 12-months) which sees it retain its position in our top rate tables. For those who wish to maintain both flexible access to their money and to also have the option to add to their savings pot when possible, this account may now be a tempting offer as both easy access and further additions are permitted and unrestricted. However, the bonus rate will expire after 12 months, so investors may want to schedule in a review around then as the rate will drop. Overall, this account receives an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.50% gross / 0.50% AER payable yearly (0.40% of which is a bonus that expires after 12 months)
  • Notice / term: None
  • Minimum opening amount: £1
  • Maximum investment amount: No maximum
  • Access: Permitted
  • Further additions: Permitted
  • Opening account: Online
  • Managing account: Online and via its mobile app
  • Other information: Minimum applicant age 18. Joint account option available.

 

Mortgages

Bank of Ireland for Intermediaries – Two-year fixed rate mortgage, 95% loan-to-value

Bank of Ireland for Intermediaries has made a number of rate reductions this week, including applying cuts of up to 0.12% on its 95% loan-to-value deals. The two-year offering for those purchasing a home which was priced at 3.60% has now been reduced and is priced at 3.53% to 31 October 2023. Whilst there are some lower initial rates on offer in this sector of the market, the appeal of this deal is enhanced by the fact that there is no arrangement fee to pay and that borrowers can also benefit from a generous incentive package of both a free valuation and £500 cashback, which those stretching their savings pot to meet a 5% deposit may be further enticed by. On full assessment, this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 3.53% fixed rate to 31.10.23
  • Product fee: None
  • Maximum loan-to-value: 95%
  • Available to: House purchase customers
  • Incentives: Free valuation and £500 cashback
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain and Northern Ireland. Available via intermediaries.

 

Leeds Building Society – Five-year fixed rate mortgage, 90% loan-to-value

Borrowers who have either a 10% deposit or equity available may be pleased to note that amongst the rate reductions applied by Leeds Building Society to selected fixed rate deals this week, is a significant cut of 0.33% made to its no-fee five-year fixed rate deal. Now priced at 3.02% to 31 October 2026, this deal continues to provide both purchase or remortgage customers with up to 90% loan-to-value and is the lowest rate within its sector of the market to not carry any associated fee. Not only can borrowers who are looking to keep any outgoings on a new mortgage to minimum benefit from the lack of a fee, but there is also an incentive package included with this deal, comprising of a free valuation for all, while those remortgaging can also receive help towards costs. On assessment, this product receives an Outstanding Moneyfacts product rating and a place in our top tables.

Key product details:

  • Rate: 3.02% fixed rate to 31.10.26
  • Product fee: None
  • Maximum loan-to-value: 90%
  • Available to: All borrower types
  • Incentives: Free valuation and, for those remortgaging help towards costs
  • Flexible features: Allows overpayments
  • Lending area: England, Wales, mainland Scotland and Northern Ireland.

 

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

NatWest has reduced various products in its range by as much as 0.38% this week, including making a rate cut of 0.35% to its two-year fixed rate deal for those who are remortgaging at 60% loan-to-value. Now priced at 1.14% to 30 November 2023, this is a little above the lowest initial rates offered in this sector of the market which are currently available below 1%. However, this option could be an attractive one for those with the required level of equity as there is no fee payable and borrowers can also benefit from an incentive of a free valuation and free legal fees, which could assist keeping the costs associated with a new mortgage to a minimum. Assessed as a whole, this deal earns an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.14% fixed rate to 30.11.23
  • Product fee: None
  • Maximum loan-to-value: 60%
  • Available to: Remortgage customers
  • Incentives: Free valuation and free legal fees
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain and Northern Ireland.

 

Buy-to-Let Mortgages

Virgin Money – Five-year fixed rate mortgage, 75% loan-to-value

Landlords may be interested to see that Virgin Money has made cuts of up to 0.30% across selected fixed rates this week. After a reduction of 0.10% the five-year fixed rate product at 75% loan-to-value is now priced at 1.94% to 1 December 2026 and could well be an attractive option for landlords looking for the stability of a longer-term fixed rate. Now amongst the lowest initial rates offered in this sector of the market for property investors, when assessed on all its features the competitive rate balances against an admittedly higher fee of £1,995, which is offset slightly by a generous incentive package with £500 cashback for those purchasing, while for those remortgaging there is the option of either £300 cashback or free legal fees and also a free valuation. On balance the deal earns a position in our top tables and an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.94% fixed rate to 1.12.26
  • Product fee: £1,995
  • Maximum loan-to-value: 75%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: For those remortgaging, either free legal fees or £300 cashback and a free valuation, and for those purchasing £500 cashback
  • Flexible features: Allows overpayments. Payment holidays considered by arrangement
  • Lending area: Great Britain and Northern Ireland.

 

Loans

M&S Bank – Personal Loan

This week, M&S Bank has reduced the rate for borrowers looking for an advance of between £7,500 to £15,000. Receiving a cut of 0.1%, borrowing in this tier is now charged at just 2.8% APR. Already a good option all round, borrowers looking to take out loan amounts in this bracket will now find that more affordable with this rate reduction, seeing this product move further up our top tables. Additionally, successful applicants may also benefit from the fact that there is also the option to make overpayments without incurring an early repayment penalty, and the loan also offers the option to apply for top-ups, which may be of interest to some borrowers, particularly those looking for some flexibility. Overall, the product earns an Excellent Moneyfacts product rating.

Key product details:

  • Representative APR: 2.8%
  • Loan period: Rate shown is based on a term of 84 months for a £7,500 borrowing
  • Application available: Online, by phone and in branch.
  • Other information: Minimum age 18. Minimum applicant income £10,000. 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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