Two were picked out as paying customers money
Several banking deals – including ones that pay customers as much as £250 – have been highlighted by experts this week. The Moneyfactscompare.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
Personal finance analyst at the service, Caitlyn Eastell, has analysed a host of deals this week, from mortgages to savings and current accounts and given them ratings. Looking first at savings, she highlighted the Vanquis Bank 1-Year Fixed Rate Cash ISA.
Caitlyn said: “Vanquis Bank has increased the rate on its range of Fixed Rate Cash ISAs this week. The account which fares best is the one-year option, which has seen a boost to 4.66% AER and takes the market-leading position.
“Savers must deposit at least £1,000, however, those investing their full £20,000 allowance can expect to receive over £900 in interest over the one-year period. There is the option to have interest paid on anniversary or monthly, however, as is the case with many fixed cash ISAs earlier access is subject to an interest loss penalty which should be carefully considered.
“Adding to its appeal, savers can make further additions for 30 days from the account opening but it must be done via a nominated account. On assessment, this account takes the top position as a ‘Best Buy’ and receives an Excellent Moneyfacts product rating.”
Turning to mortgages, Barclays’ two-year variable tracker rate mortgage, with a 60% loan-to-value, was chosen.
Caitlyn said: “This week, Barclays Mortgage has made amendments across a handful of its variable and fixed rates. One deal to see a refresh is the two-year variable tracker option for all borrower types; despite seeing a small 0.05% rise it continues to take a prominent position in the Best Buy tables and is now priced at 4.06%.
“Borrowers may find this appealing as it pays a lower initial rate compared to fixed rate deals. The deal is available at 60% loan-to-value and borrowers may note the reasonable £999 product fee, but this is offset by its free valuation incentive for all borrowers, while remortgage customers can also benefit from free legal fees or £250 cashback. Overall, the deal earns an Outstanding Moneyfacts product rating.”
In the buy-to-let market, Leeds Building Society’s five-year fixed rate mortgage, with a 60% loan-to-value, was picked.
Caitlyn said: “Leeds Building Society has refreshed its range for landlords this week. One deal to see a generous 0.22% cut is the five-year fixed deal at 60% loan-to-value. It’s now priced at a competitive 4.67% until August 31, 2031, and is available for second-time buyers and remortgage customers.
“While landlords may note the £1,499 fee, this is partly offset by its incentive package which includes a free valuation for all borrowers, while remortgage customers will also receive help towards costs. For those seeking some flexibility, overpayments are permitted. As a result, the deal secures a competitive position in the Best Buy tables and earns an ‘Outstanding’ product rating.”
Looking at bank accounts, first direct’s 1st Account was chosen.
Caitlyn said: “The latest update from first direct sees it increase its switching incentive to £200 on its 1st Account for customers who switch using the Current Account Switch Service (CASS). As is the case with many switching offers, customers will have to fulfil certain criteria to ensure they are eligible.
“The account does not charge any monthly fees and may appeal to consumers looking for some flexibility with their arranged overdraft as it offers a £250 interest-free buffer, however, it’s crucial they note that the rate rises to 39.90% EAR if this buffer is exceeded. Customers looking for credit interest may be left disappointed at the lack of rate, but the current account does come with a linked regular saver that is fixed for 12 months which may add to its appeal. Overall, the account earns an Outstanding Moneyfacts product rating.”
A credit card was also highlighted, specifically the HSBC Purchase Plus Credit Card Visa.
Caitlyn said: “This week HSBC has increased the introductory 0% purchase term on its Purchase Plus credit card to 24 months, which now sees it offer one of the longest interest-free purchase terms on the market. This card may appeal to borrowers looking to make larger purchases and pay it off over an extended period, however, the standard fee rises to 24.9% thereafter, which should be noted.
“Further adding to its appeal, the card offers 0% on balance transfers for 17 months, a helpful perk for someone who is also looking to move existing debt. Borrowers should carefully consider their circumstances before applying to ensure they meet the basic requirements, and the card is the best option for their needs. On assessment, this deal secures a competitive position as a Moneyfacts Best Buy and earns an ‘Outstanding’ product rating.”
Finally, Santander’s unsecured personal loan was chosen.
Caitlyn said: “Santander has reduced the rate on the £7,500 to £25,000 tier of its Personal Loan to 6.1% APR. The cut will make borrowing between these amounts even cheaper and takes a competitive position in the market when compared against its peers.
“Further adding to its appeal, this loan permits overpayments to be made without receiving an early repayment charge. Borrowers should consider their options carefully when applying for a loan to ensure they can afford repayments and so get the best deal for their needs. Overall, the product earns an Outstanding Moneyfacts product rating.”
Anyone looking at a deal should check all of the small print and make sure it works for them.
