Moneyfacts Weekly Product News – 23.04.2020 | moneyfacts.co.uk

Eleanor Williams

Finance Expert & Press Officer
Published: 23/04/2020

The Moneyfacts Weekly Product News is a round-up of the latest products or rate changes to hit the consumer finance market this week. The deals are available right now, but may be subject to change. Find the best product for you.

Savings

Allica Bank – 12 Month Fixed-Term Savings Account (Issue 2)

Allica Bank has increased the rate on its 12-month fixed term account, from 1.49% to now pay 1.55% on maturity. This increase of 0.06% has propelled this account into the top 10 when compared against similar products currently available in the market. Consumers may also be pleased to note that this account has a monthly interest option paying 1.54% gross, which may appeal to those looking to supplement their regular income. Following this change, the account receives an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.55% gross/1.55% AER, payable on maturity, a monthly rate of 1.54% gross/1.55% AER is also available.
• Notice/term: 12 months
• Minimum opening amount: £1,000
• Maximum investment amount: £250,000
• Access: Not permitted
• Further additions: Permitted within 14 days of account opening
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 18, paid into a variable rate account on maturity, pending instructions/withdrawal.

Zenith Bank (UK) – 2 Year Fixed Term Deposit

The 2 Year Fixed Term Deposit account from Zenith Bank (UK) has received a notable increase of 0.10% this week, now paying 1.60% gross on anniversary. This update ensures the account assumes a position in the top 10 accounts of its respective sector. Savers should note that as earlier access is not permitted, careful planning is advised. This account now receives an Excellent Moneyfacts product rating. 

Key product details:
• Rate: 1.60% gross/1.60% AER, payable on anniversary
• Notice/term: Two years
• Minimum opening amount: £1,000
• Maximum investment amount: £2 million
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: By post
• Other information: Minimum applicant age 18, paid into a linked or nominated account on maturity.

Gatehouse Bank – Five-Year Fixed Term Deposit

This week sees Gatehouse Bank reduce the rate on its five-year fixed bond by 0.15%, from 2.00% to 1.85%. Despite this rate cut, this account retains a position within the top 10 when compared against other bonds with similar terms. Paying 1.85% on its anniversary, this deal may entice savers searching for a competitive return on their cash over the longer-term. Savers should note that, as is common in the fixed rate market, earlier access is not permitted. This account earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.85% gross/1.85% AER, payable on anniversary
• Notice/term: Five years
• Minimum opening amount: £1,000
• Maximum investment amount: £1,000,000
• Access: Not permitted
• Further additions: Not permitted
• Opening account: Online
• Managing account: Online
• Other information: Minimum applicant age 18, Sharia’a-compliant account – rates shown are expected profit rate, paid into a variable rate account pending instructions/withdrawal.

 

Mortgages

Clydesdale Bank – Two-year fixed rate mortgage, 65% loan-to-value

Clydesdale Bank has launched a range of products with a maximum advance amount of £325,000 this week. The lowest rate of these is a two-year fixed rate deal priced at 1.79% to 30.6.22. Available up to a maximum of 65% loan-to-value, while this deal is not the lowest rate offered within this sector of the market, it carries a reasonable fee of £999 and also offers a generous incentive package of a free valuation and also free legal fees for remortgages. Taking these features into account, this option earns an Excellent Moneyfacts product rating.

Key product details:
• Rate: 1.79% fixed to 30.6.22
• Product fee: £999
• Maximum loan-to-value: 65%
• Available to: All borrowers
• Incentives: Free valuation and free legal fees for remortgages
• Flexible features: Allows overpayments
• Lending area: Great Britain.


Santander – Two-year variable tracker rate mortgage, 75% loan-to-value

Among other amendments to its range, Santander has updated its variable tracker rate mortgages and increased the rates payable by 0.20%. The 75% loan-to-value deal is now priced at 1.49% for two years. Despite the increase in rate, this product matches the lowest rate currently offered within this sector for house purchases and is only slightly higher than the lowest rated remortgage deal on equivalent terms. This deal carries a reasonable fee of £999 and a generous incentive package of a free valuation for all borrowers, while those remortgaging may also benefit from either free legal fees or £250 cashback on completion.

Key product details:
• Rate: 1.49% variable tracker for two years
• Product fee: £999, which can be added to the mortgage advance
• Maximum loan-to-value: 75%
• Available to: All borrower types
• Incentives: Free valuation and for remortgage customers free legal fees or £250 cashback
• Flexible features: Allows overpayments
• Lending area: Great Britain & Northern Ireland.

 

Loans

Hitachi Personal Finance – Hitachi Personal Loan

This week, Hitachi Personal Finance has reduced rates charged on selected tiers on its unsecured personal loan. Customers looking to borrow between £2,500 to £2,999 over a term of two to five years will find rates cut by 1.1% APR and now stand at 13.4% APR, while those looking to borrow between £3,000 and £4,999 will find the rate has reduced by 0.1% APR to 8.4% APR. These reductions have made it cheaper for those looking to borrow smaller amounts, although borrowers must be aware that the rate offered may vary dependent on credit rating. This product earns an Outstanding Moneyfacts product rating.

Key product details:
• Representative APR: 3.2%
• Loan period: Rate shown is based on a term of 60 months for a £7,500 borrowing
• Application available: Online and by phone
• Other information: Minimum age 21, electronic signature accepted so that money can be in the account within 48 hours.

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.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy