Pick of the week - 07.01.16

Thursday, 7 January 2016

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

State Bank of India

State Bank of India has launched a new two-year fixed rate ISA, which pays 2.00% yearly (or on maturity). Savers must invest from £5,000. Early closure is permitted subject to 30 days’ notice being given with a 1% loss of interest penalty. Transfers in from cash and stocks & shares ISAs are accepted. This deal is for savers aged 18 and over and can be operated in branch, by post and online.

The 2.00% two-year fixed rate cash ISA from State Bank of India is highly competitive and enters the sector as a joint market-leader, heading into the Moneyfacts.co.uk Best Buys as a result. This product is ideal for savers who are looking to make the most of their tax-free allowance, and with the extra flexibility of early access to funds, this is likely to be a popular choice.


Close Brothers Savings

Close Brothers Savings has increased the rate paid on its two-year fixed rate bond, which now pays 2.25% upon its anniversary. Savers must invest from £10,000 up to a maximum of £1 million. Additions and early access to funds are not permitted. This deal is for savers aged 18 and over and can be operated by post and online.

Savers looking for a straightforward fixed rate bond will be delighted by this latest update from Close Brothers Savings. Paying 2.25%, this deal enters the Moneyfacts.co.uk Best Buys and is likely to be a popular choice for savers looking for a short-term home for their savings; however, with no early access to funds, savers must ensure they are happy with their initial deposit and the length of the term.


Mortgages

Nationwide Building Society

Nationwide Building Society has reduced the rate of its two-year fixed mortgage, which is now priced at 3.89%. This deal is for first-time buyers only who borrow between £25,000 and £250,000 at 95% 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 free valuation and a £500 cash rebate is available. Borrowers who hold a Flex Current Account with Nationwide Building Society will receive an additional £250 cash rebate. This deal has the flexibility of being able to make overpayments of up to 10% of the mortgage advance per annum and make underpayments.

First-time buyers with a small 5% deposit will be delighted by this latest update from Nationwide Building Society. Priced at 3.89%, this deal heads straight into the Moneyfacts.co.uk Best Buys. With a fantastic incentive package, this deal is likely to be a cost-effective choice for many borrowers looking to get onto the first rung of the housing ladder.

Nationwide Building Society’s lending includes Scotland.


Skipton Building Society

Skipton Building Society has launched a new variable rate mortgage priced at 1.49% (0.99% + base rate) for two years. This deal is for all applicants who borrow at 60% loan-to-value. A fee of £995 is payable, all of which can be added to the advance of the mortgage. An incentive package for remortgage customers of free valuation and free legal fees is available. This deal has the flexibility of being able to make overpayments of up to 10% of the outstanding balance and take payment holidays.

The 1.49% two-year variable rate mortgage from Skipton Building Society is reasonably priced in the market. With a great incentive for remortgage customers, this deal may be a popular choice among borrowers who are looking to keep initial costs down.

Skipton Building Society lending area includes Scotland.


Credit Cards

Virgin Money

Virgin Money has launched its 38 Month Balance Transfer Credit Card MasterCard. This deal has a 38-month interest-free term for balance transfers with an introductory fee of 2.79% (min £3.00). Purchases are charged at 18.9% APR. This card also offers borrowers an introductory 38-month interest-free term on money transfers for which a fee of 4.00% (min £3.00) is charged. Borrowers must be at least 18 years old and applications can be made online and by phone.

At this time of year, where debt is likely to be on many people’s minds, it is fantastic to see a great balance transfer deal. Offering 38 months interest-free, this deal sits comfortably in the Moneyfacts.co.uk Best Buys and is likely to be a popular choice among borrowers looking to clear their credit card debts over the longer term. The 38-month interest-free term on money transfers is also the longest available in the market, which will be appeal to those looking to credit their bank accounts. However, the fee of 4.00% is higher than other alternatives on the market.


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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