Pick of the Week - 23/03/2017

Thursday, 23 March 2017
money
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

Coventry Building Society

Coventry Building Society has launched a new five-year fixed rate ISA, paying 1.70% yearly. Savers can invest from as little as £1. Additions are permitted within 14 days of account opening or while the issue remains open. Early access to funds is also allowed, subject to closure of the account and a 180-day loss of interest penalty. Transfers in from cash and stocks & shares ISAs are also permitted. This deal is for savers aged 16 and over and can be operated in branch, by post, by telephone or online.

Savers who have yet to utilise this year's tax-free allowance will be interested in this latest launch from Coventry Building Society. Paying 1.70%, this deal soars into the Moneyfacts.co.uk Best Buys. With the extra flexibility of allowing early access to funds, this is likely to be a hit among savers looking for a long-term home for their savings.

Paragon Bank

Paragon Bank has increased the rate on its one-year fixed rate bond, which now pays 1.51% upon its anniversary or 1.50% monthly. Savers can invest from £1,000 up to a maximum of £100,000. Additions are allowed within five days of the account opening, early access to funds is not permitted. This deal is for savers aged 18 and over and must be operated online. This deal is available from 24.3.17.

Paying 1.51%, this deal from Paragon Bank is highly competitive and improves its position in the Moneyfacts.co.uk Best Buys. This deal may suit those looking to fix over the short-term, however with no early access to funds, savers must be happy with their initial deposit.

Mortgages

Post Office Money

Post Office Money has launched a new two-year fixed rate mortgage, priced at 2.53% to 30.6.19. This deal is for all applicants who wish to borrow from £25,001 at 90% loan-to-value. No fee is payable, and an incentive package of free valuation for all borrowers and free legal fees for house purchase customers is available. This deal has the flexibility of allowing borrowers to make overpayments of up to 10% of the outstanding balance.

Borrowers looking for a recognised brand will be intrigued by this latest launch from Post Office Money. Priced at 2.53% this mortgage sits comfortably in the market. Benefiting from no fee and a decent incentive package, this deal becomes an attractive option for those looking to minimise their upfront costs.

Post Office Money's lending area includes Scotland.

Virgin Money

Virgin Money has reduced its two-year fixed rate mortgage, which is now priced at 1.42% to 1.7.19. This deal is for all applicants who wish to borrow at 75% loan-to-value. A fee of £995 is payable, all of which can be added to the advance of the mortgage. An incentive package of free valuation and legal fees for those remortgaging and £300 cashback for house purchase customers is available. This deal comes with the flexibility of allowing borrowers to make overpayments of up to 10% of the outstanding balance and take payment holidays.

The 1.42% two-year fixed rate from Virgin Money is reasonably priced in the market. With the addition of a great incentive package which includes £300 cashback for house purchase customers, this is a competitive option for anyone with the required 25% deposit.

Virgin Money's lending area includes Scotland.

Credit Cards

AA

AA has tweaked its Dual Credit Card MasterCard. This deal now offers 30 months of interest-free purchases, and also comes with a 16-month interest-free term for balance transfers, for which an introductory balance transfer fee of 2.89% is payable. Purchases will be charged at 18.9% APR after the deal expires. To be eligible for this deal, customers must be 18 or over and have a minimum income of £8,000, and can apply by telephone or online.

Borrowers with a large purchase in mind who are looking for some breathing space will be delighted by this latest offer from AA. This deal heads to joint-top of the Moneyfacts.co.uk Best Buys with the longest introductory term on the market, which will no doubt make this an attractive option for many. However, borrowers must ensure the balance is paid in full before the end of the term to ensure no interest is charged.


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. 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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