Moneyfacts Weekly Product News – 27.02.2020

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.

OakNorth Bank – 24 Month Fixed Rate Cash ISA

OakNorth Bank has increased the rate on its 24-month fixed cash ISA this week by 0.05%, securing the lead position as the top rate in its sector. Now paying 1.51% monthly, the deal may attract savers looking to take full advantage of their ISA allowance over the short-term, but also those who may require access to their funds, subject to an interest penalty, during the 24-month term. The deal earns an Excellent Moneyfacts product rating in the process.

Key product details:
• Rate: 1.51% gross / 1.51% AER, payable monthly
• Notice / term: Fixed for 24 months
• Minimum opening amount: £1
• Maximum investment amount: ISA allowance
• Access: Permitted subject to a 180-day loss of interest penalty
• Further additions: Permitted for 2019/2020 tax year
• Transfers in: Accepts cash ISAs
• Opening account: Online
• Managing account: Online, by phone and mobile app
• Other information: Minimum applicant age 18, initial deposit must be received within 30 calendar days or account will be closed.

Principality Building Society – 1 Year Regular Saver Bond – Issue 21

Principality Building Society has reduced the maximum monthly deposit on its 1 Year Regular Saver Bond from £500 to £250 this week, but it still pays an attractive rate. Paying 2.00% fixed on maturity, this option continues to provide savers with a healthy return on their funds, despite a reduction to the maximum monthly amount that can be deposited. Savers may then find this option particularly beneficial if they are looking to start the savings habit with a small percentage of their salary.

Key product details:
• Rate: 2.00% gross / 2.00% AER, payable on maturity
• Notice / term: Fixed for one year
• Minimum opening amount: £20
• Maximum investment amount: £3,000
• Access: Not permitted (earlier access on closure only)
• Further additions: Maximum of £250 per month
• Opening account: Online, by phone or in branch
• Managing account: Online, by phone and in branch
• Other information: Minimum applicant age 16, account reverts to the Instant Access account on maturity.

Barclays Mortgage – 10-year fixed rate mortgage, 60% loan-to-value

This week Barclays Mortgage has made various amendments to its range, including reducing the rate of its 10-year fixed rate mortgage at 60% loan-to-value by 0.10%. Priced at 2.13%, this deal is now the joint-lowest rate currently available in its sector and charges a product fee of £999, which can be added to the mortgage advance. This option also has the bonus of an incentive package of free valuation and for remortgage customers free legal fees, which may be attractive to borrowers looking to save on the upfront cost. This combination of features sees it earn an Excellent Moneyfacts product rating.

Key product details:
• Rate: 2.13% fixed to 30.4.30
• Product fee: £999, all of which can be added to the mortgage advance
• Maximum loan-to-value: 60%
• Available to: All borrower types
• Incentives: Free valuation for all borrowers and free legal fees for remortgage customers
• Flexible features: Allows overpayments
• Lending area: Great Britain and Northern Ireland.

MBNA Limited – Personal Loan

MBNA has launched an unsecured personal loan offering some attractive rates compared to its peers. Those looking to borrow between £7,500 to £15,000 over one to seven years will find the rate charged is among the most competitive currently available in this market, priced at 2.9% APR. Consumers should of course be aware that the rate will be dependent on their credit rating, the amount borrowed and the term of the loan. Another useful feature of this deal is that overpayments are permitted without an early repayment charge. Overall, the loan earns an Excellent Moneyfacts product rating.

Key product details:
• Representative APR: 2.9%
• Loan period: Rate shown is based on a term of 60 months
• Application available: Online or by smartphone app
• Other information: Available to new or existing customers, minimum age 18, overpayments allowed without an early repayment charge.