Pick of the week - 170915

Thursday, 17 September 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

Paragon Bank

Paragon Bank has increased the rate on its two-year fixed rate bond, which now pays 2.40% upon its anniversary or 2.37% monthly. Savers must invest from £1,000 up to a maximum of £100,000. Additions are permitted within five days of the account opening, but early access is not permitted. This deal is for savers aged 18 and over and must be operated online.

Internet investors will be delighted by this latest update from Paragon Bank. Paying 2.40%, this two-year fixed rate is the highest paying two-year bond in the market, heading straight into the Moneyfacts.co.uk Best Buys as a result. However, with no early access to funds, savers will need to be happy to lock their money away.


Virgin Money

Virgin Money has increased the rate paid on its one-year fixed rate ISA, which is now 1.76% yearly or 1.75% monthly until 15.10.16. Savers can invest from as little as £1. Additions are permitted within 30 days of the account opening and early access is also allowed subject to a penalty of 60 days’ loss of interest. 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 and by post. An internet-only version is also available.

The 1.76% one-year fixed rate ISA is highly competitive and sits comfortably among the top five of the market. This is a great choice for savers who want to earn a great rate while keeping their savings safe from the taxman.


Mortgages

Nationwide Building Society

Nationwide Building Society has reduced its 10-year fixed rate mortgage, which is now priced at 3.99%. This deal is for first-time buyers only who borrow between £25,000 and £750,000 at 85% loan-to-value. A fee of £999 is payable, all of which can be added to the advance of the mortgage. An incentive package of a £500 rebate is available. This deal has the flexibility of being able to make overpayments of up to 10% of the outstanding balance and make underpayments.

Borrowers looking for a long-term mortgage deal will be surprised by this latest offer from Nationwide Building Society. At 3.99%, this deal is highly competitive and sits comfortably in the market. With the extra bonus of a £500 cash rebate, this deal will be a popular choice for borrowers who are looking for the extra security a 10-year fixed rate provides.

Nationwide Building Society’s lending area includes Scotland.


Loughborough Building Society

Loughborough Building Society has launched a new two-year discounted variable rate mortgage, which is priced at 1.99% (3.00% discount). This deal is for all customers who borrow between £25,000 and £500,000 at 85% loan-to-value. A fee of £299 is payable, all of which can be added to the advance of the mortgage. This deal has the flexibility to make overpayments of up to 10% of the outstanding balance.

The 1.99% two-year discounted mortgage from Loughborough Building Society is highly competitive, sitting within the top five of its sector. With a low fee of £299, this is likely to be a cost-effective option for many.

Loughborough Building Society’s lending area does not include Scotland.


Current Accounts

Tesco Bank

Tesco Bank has removed its £5 monthly fee on its current account. This account pays 3% AER credit interest on balances up to £2,999.99 and customers can also fall back on an authorised overdraft rate of 18.9% EAR. Account holders will be able to benefit from earning Tesco Clubcard points with debit card spending too.

The removal of the monthly fee from Tesco Bank’s current account puts this deal firmly in the Moneyfacts.co.uk Best Buys. The account is a great all-rounder, offering not only competitive credit interest but a good overdraft facility, which is likely to appeal to customers looking for fuss-free banking wrapped up with the added bonus of extra loyalty points.


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.

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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