Last updated: 16 May 2024 at 09:10
The Moneyfactscompare.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market, ranging from mortgages to savings accounts. This week I've analysed the following deals, along with their perks.
This week, Hodge Bank has increased the rate on its 1 Year Fixed Rate Bond improving its overall position in the market. The account now pays a competitive 5.14% gross/AER on its maturity. Alternatively, savers can select a monthly interest payment option which pays 5.02% gross/5.14% AER.
It is important that savers are comfortable with locking their investments in for the full term as early access is not permitted, but they may be glad to see that they can take advantage of making further additions 14 days from the account opening. Overall, the deal earns an Excellent Moneyfacts product rating.
OakNorth Bank has increased the rate on its 12 Month Fixed Rate Cash ISA this week. It retains a competitive position in the fixed ISA market when compared to other products of a similar term. The deal pays 4.63% gross/4.73% AER monthly, which may be ideal for those looking to boost their income each month.
Investors who wish to utilise their ISA allowance and are comfortable with locking their cash away for the full term may find this an appealing choice. However, it is wise for investors to note that the account must be funded within 30 days of account approval, or it will be closed. Overall, this deal earns an Excellent Moneyfacts product rating.
Beehive Money has launched a new two-year fixed rate cash ISA. It takes a competitive position in the fixed ISA market paying 4.60% until 30th June 2026. Savers will only need a £500 minimum investment and they may also be glad to see that further additions can be paid in for the duration of the issue being open.
Although earlier access is permitted on transfers out, they are subject to 180 days loss of interest penalty, so this is important for investors to consider. Overall, the deal earns an Excellent Moneyfacts product rating.
This week GB Bank has launched a new 5-year Fixed Term Deposit on the Raisin UK platform. The deal pays an appealing 4.55% to savers who have a minimum of £1,000 to invest. As is common in the fixed market, earlier access and further additions are not permitted so it is important that investors are comfortable with locking their cash in for the full five years.
The deal secures a prominent position in our top tables and earns an Excellent Moneyfacts product rating.
MPowered Mortgages has reduced its two and five year fixed rates for house purchase customers this week. The two-year deal at 60% loan-to-value has seen a cut of 0.18% and is now priced at a competitive 4.89%; it is available through selected intermediaries.
Borrowers may well find this deal an enticing option if they are trying to save on upfront costs as there is no product fee charged and it has a free valuation incentive attached. The reduction, along with its fee and incentive package, enhances its position and earns an Outstanding Moneyfacts product rating.
Representative example: £218,000 mortgage over 25 years initially at 4.89% fixed for 24 months reverting to 8.74% variable for term. 24 monthly payments of £1260.47 and 276 monthly payments of £1756.62. Total amount payable £515,128.40 includes loan amount, interest of £297,078, valuation fees of £0 and product fees of £0. The overall cost for comparison is 8.2% APRC representative.
Santander has launched a new two-year variable tracker product this week. Available at 75% loan-to-value for second-time buyers and remortgage customers through selected intermediaries.
The deal is priced at a competitive 5.64% for the full term and may entice landlords with its incentive package which includes a free valuation for all borrowers but those remortgaging will see an added free legal fees or £250 cashback incentive attached. However, it is worth noting that there is a £1,999 product fee associated with the deal. Overall, the deal earns an Excellent Moneyfacts product rating.
Representative example: £140,625 mortgage over 25 years initially at a tracker rate of 5.64% variable for 24 months reverting to 7.50% variable for term. 24 monthly payments of £660.94 and 276 monthly payments of £878.91. Total amount payable £401,340.72 includes loan amount, interest of £258,442, valuation fees of £0 and product fees of £1999. The overall cost for comparison is 7.6% APRC representative.
For customers looking to switch their current account provider, Santander has introduced a new switching incentive this week on a handful of its current accounts, including its Santander Edge Up current account. Customers who switch using the CASS (Current Account Switch Service) will now receive £175 cashback following certain conditions.
Adding to its appeal, the card also offers 3.45% gross interest on balances of up to £25,000 alongside offering 1% cashback on household bills, although the account does come with a £5 monthly fee, which some customers may wish to consider. As is the case when switching to any account, customers will need to assess all the benefits and charges to ensure it’s the right choice for them. Overall, the account earns an Outstanding Moneyfacts product rating.
Representative example: Based on an overdraft limit of £1200 charged at 39.94% EAR Variable. Representative 39.9% APR variable.
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. Moneyfactscompare.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.