Pick of the week - 060815

Thursday, 6 August 2015

The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.

Brief product details together with independent Moneyfacts analysis can be used with confidence in your finance sections. You can select one or two products to sit beside a relevant story or use them all as a general feature.

Savings

Julian Hodge Bank

Julian Hodge Bank has increased rates on its five-year fixed rate ISA, which now pays 2.55% yearly. Savers must invest from £5,000. No additions are permitted but early access to funds is allowed, subject to a penalty and closure of the account. Transfers in from both cash and stocks & shares ISAs are accepted. This deal is for savers aged 16 and over and can be operated in branch, by post and by phone.

Savers who have yet to invest this year’s tax-free allowance will be ecstatic by the increase to Julian Hodge Bank’s five-year fixed rate ISA. Paying 2.55%, this deal heads for the top of the Moneyfacts.co.uk Best Buys and will be a great opportunity for those looking to invest over the longer term.


Shawbrook Bank

Shawbrook Bank has increased the rate on its one-year fixed rate bond which now pays 1.95% on maturity. Savers can invest from £1,000 up to a maximum of £2 million. Additions are permitted while the issue remains open however early access to funds is not allowed. This deal is for savers aged 18 and over and can be operated by post, by phone and online.

This 1.95% one-year fixed rate bond is highly competitive and sits within the top five of the market. This is a great option for anyone looking to maximise their interest for a year in the hope that savings rates will rise in the future. However, with no early access to funds, savers will need to be happy locking their money away.


Mortgages

Norwich & Peterborough Building Society

Norwich & Peterborough Building Society has reduced the cost of its two-year fixed rate mortgage, which is now priced at 4.34%. This deal is for first and second-time buyers who borrow between £50,000 and £500,000 at 95% loan-to-value. No fee is payable, and an incentive package of free valuation and a £250 cash rebate is available. This deal has the added flexibility of allowing borrowers to make overpayments of up to 10% of the outstanding balance, make underpayments and take payment holidays.

Borrowers with a small deposit of 5% will be delighted by this latest update from Norwich & Peterborough Building Society. Priced at 4.34%, this two-year fixed rate deal enters the Moneyfacts.co.uk Best Buys. Not only will borrowers be able to enjoy a great rate, but with no fee and a fantastic incentive package this will be a great option for those looking to minimise any upfront costs.

Norwich & Peterborough Building Society’s lending area does not include Scotland.


Leeds Building Society

Leeds Building Society has launched a new two-year fixed rate mortgage, priced at 3.29% until 31.10.17. This deal is for all applicants who borrow between £5,000 and £400,000 at 90% loan-to-value. A fee of £199 is payable, all of which can be added to the advance of the mortgage. An incentive package of free valuation is available to all borrowers (max £560), while those remortgaging will be offered help towards costs. This deal has the flexibility allowing overpayments of up to 10% of the outstanding balance.

This new 3.29% two-year fixed rate from Leeds Building Society is reasonably priced within the market. With a low fee and a great incentive package, this is likely to be a cost effective option for many.

Leeds Building Society’s lending area includes Scotland.


Loans

Tesco Bank

Tesco Bank has launched a Clubcard holder loan that sits alongside its new customer loan, with lower rates for existing customers. Customers can now apply for a loan of £7,500 over one to seven years and get a competitive rate of 3.7% APR. Customers must be aged 18 or over with a minimum annual income of £10,000. Applications can be made online or by telephone.

Tesco Bank has propelled a new loan into the market for Clubcard holders which charges lower rates than that of its new customer loan. Loyal customers can now apply for a competitive 3.7% APR loan for £7,500, and while there may be lower rates available at the top end of the market, this loan still gets an overall ‘outstanding’ Moneyfacts rating.

Notes to editors: Publications are free to reproduce the tables and comments for their readers and the correct sourcing should read Moneyfacts.co.uk. Online publications are also free to reproduce the tables and comments for their viewers by sourcing a hyperlink to Moneyfacts.co.uk on any page that uses the information provided.

About Moneyfacts

Moneyfacts is the UK’s leading independent provider of personal finance information. For two decades, Moneyfacts’ information has been the key driver behind many personal finance decisions, from the Treasury and the Bank of England to the high street.

Moneyfacts.co.uk is a completely independent comparison site that helps consumers make better financial decisions. Our constantly reviewed Best Buys help people find the best savings rates and credit cards while our mortgage calculator and loan calculator search the whole market to find the best products.

Moneyfacts also supplies Best Buy charts to many of the UK national and regional newspapers, with a total weekly readership in excess of 22,000,000. Our dedicated research experts produce five monthly publications as well as providing real-time news and data services to the majority of banks and building societies. Additional information can be found at www.moneyfactsgroup.co.uk.

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