Moneyfacts Weekly Product News 29 04 21 | moneyfacts.co.uk

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Eleanor Williams

Finance Expert & Press Officer
Published: 29/04/2021

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

FCMB Bank (UK) – Raisin UK – 18 Month Fixed Term Deposit

FCMB Bank (UK) has launched new Raisin UK Fixed Term Deposit accounts this week, including an 18-month option that pays a rate of 0.68% on maturity (compounded annually). This account secures a position in our top rate tables when compared to other bonds with similar terms currently available. Early access and further additions are not permitted, as may be expected 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. Furthermore, a welcome bonus of up to £50 can be claimed when opening a Raisin UK product, which is added to the saver’s investment pot. Overall, the account earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.68% gross / 0.68% AER, payable on maturity (compounded annually)
  • 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 age 18. Welcome bonus (of up to £50) can be claimed on Raisin UK savings accounts with a term of at least six months opened with a minimum £5,000 (bonus added to the investment, only one bonus claim per customer on first account opened via Raisin).

 

United Trust Bank – UTB 3 Year Bond

This week, United Trust Bank has made rate increases on a selection of both its UTB Bonds and ISA Bonds. Those able to meet the minimum investment amount of £5,000 may be interested to note that following a rate rise of 0.10%, the UTB 3 Year Bond now pays 0.90% on anniversary. This increase sees the bond assume a position within our top 10 when compared to other bonds with similar terms. Neither early access nor further additions are possible with this account, so investors attracted by the competitive return should ensure that they are comfortable securing their funds away for the account’s term at outset. Following this update, the account secures an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 0.90% gross / 0.90% AER payable on anniversary
  • Notice / term: Three years
  • 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.

 

Mortgages

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

Vernon Building Society has launched a new three-year discounted variable rate product at 85% loan-to-value this week. Priced and collared at 2.29%, this is the lowest rate currently on offer within this admittedly small sector of the market and is available to both those looking to purchase or to remortgage. Furthermore, those who are hoping to keep any mortgage set-up costs to a minimum may be pleased to note that there is no fee to pay for this deal. Despite there being no further incentives on offer with this product, the low initial rate and lack of a fee ensure it earns an Excellent Moneyfacts product rating.

Key product details:

  • Rate: 2.29% discounted variable rate for three years
  • Product fee: None
  • Maximum loan-to-value: 85%
  • Available to: All borrowers
  • Incentives: None
  • Flexible features: Allows overpayments
  • Lending area: England and Wales.

 

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

In its latest update, NatWest has made various amendments, including rate reductions on selected fixed rate deals of up to 0.28%. One option that may be of particular interest to borrowers looking to purchase a home with a 25% deposit is the five-year fixed rate at 75% loan-to-value. Receiving a cut of 0.06%, this product is now priced at 1.59% to 31.8.26, which moves it closer to the lowest rates on offer within this sector of the market. Additionally, NatWest has increased the cashback incentive on this product to £350. With the associated fee for this deal remaining at a reasonable £995 – which borrowers will have the option to pay upfront or add to the advance – and the extra cashback now on offer, this option may well be attractive to those hoping to keep any outlay on associated mortgage costs to a minimum. The combination of features earns this deal an Outstanding Moneyfacts product rating.

Key product details:

  • Rate: 1.59% fixed rate to 31.8.26
  • Product fee: £995
  • Maximum loan-to-value: 75%
  • Available to: House purchase customers
  • Incentives: £350 cashback
  • Flexible features: Allows overpayments
  • Lending area: Great Britain and Northern Ireland.

 

Cards

Lloyds Bank – Platinum 0% Purchase and Balance Transfer Mastercard

This week, Lloyds Bank has increased the standard purchase rate, cash rate and balance transfer rate up to 21.94% on its dual offer Platinum 0% Purchase and Balance Transfer card. While this increase will result in making using the card more expensive for borrowers, with 0% introductory terms of 18 months for balance transfers and of 21 months for purchases, this card remains not only one of the most competitive all-round cards on offer, but may be of particular interest to those wishing to use a credit card to make purchases, as it also tops the tables for its 0% term and is likely to continue to appeal to those searching for a credit card for this purpose. On assessment, this card earns an Outstanding Moneyfacts product rating.

Key product details:

  • Introductory rate for balance transfers: 0% for 18 months
  • Introductory rate for purchases: 0% for 21 months
  • Standard rate for purchases: 21.9% APR
  • Balance transfer fee: 2.99% during the first three months from account opening, then 5.00%
  • Card fee: None
  • Opening method: Online
  • Card management: Online, by phone, in branch, or via its mobile app
  • Other information: Minimum applicant age 18. Rates 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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