- Sat, 8 May at 07:03
Product Spotlight: 18-month fixed rate bonds
The best rate currently available is from Shawbrook Bank, with 18 Month Fixed Rate Bond Issue 23 paying 0.80% AER either on its anniversary or monthly. It requires a minimum deposit of £1,000 and permits further additions while the issue remains open, but there is no access to funds prior to maturity. It must be opened online and can then be managed by phone as well.
Next is the Raisin UK – 18 Month Fixed Term Deposit account from QIB (UK) with an expected profit rate of 0.70% AER. Profit is paid on maturity. This account can only be opened online through the Raisin platform with a minimum opening deposit of £1,000, with no further additions or withdrawals accepted. Find out more by heading straight to the provider. PCF Bank pays the same rate of 0.70% AER on its 18 Month Term Deposit Issue 21, which must be opened online with a minimum investment of £1,000.
Completing this overview is the Raisin UK – 18 Month Fixed Term Deposit from FCMB Bank (UK) paying a rate of 0.68% AER. Interest is paid on maturity and compounded annually. The account must be opened online via the Raisin platform and has a minimum deposit requirement of £1,000, after which no further access is possible prior to maturity. Find out more on the provider’s site. DF Capital also offers the same rate of 0.68% on its 18 Month Fixed Rate Deposit (Issue 5).
Get a bonus of up to £50
When you open and fund an account through the Raisin UK platform you can claim a bonus of up to £50. You must meet some minimum deposit and balance requirements to be eligible for a bonus. Those opening an easy access account must have a minimum balance of £5,000 or more for the first six months from opening the account. If you open a fixed term account, the minimum opening balance must be £5,000 or more. Only one bonus is available per person.
You can find more of the best 12 and 18-month fixed bonds on our chart.
Product Spotlight: First-time landlord mortgages
If you’re considering buy-to-let (BTL) for the first time, then you will need a lender happy to accept your new landlord status. We have listed below the top three BTL mortgages that accept first-time landlords.
First up is TSB, with a fixed rate of 1.59% (4.0% APRC) until 30 September 2023, after which it increases to 4.44% variable. It is available for mortgages up to 60% loan-to-value (LTV) and has an arrangement fee of £995. Overpayments are allowed and borrowers can have a maximum of three buy-to-let properties. An incentive of free valuation is available.
Next is Virgin Money, with a rate of 1.87% (4.2% APRC) fixed until 1 August 2023, after which the rate increases to 4.54% variable. It is available for mortgages up to 75% LTV and there is an arrangement fee of £995. Overpayments and payment holidays are permitted, and borrowers can have a maximum of three buy-to-let properties. Virgin Money also offers a rate of 1.71% fixed until 1 August 2024 but only up to 60% LTV and with an arrangement fee of £1,995. The rate increases to 4.54% variable after the initial term.
We then have Principality Building Society offering a discounted variable rate of 1.95% (4.0% APRC) to 30 September 2023 (a 2.54% discount), after which it increases to 4.40% variable. The maximum LTV is 60% and there are no arrangement fees. Overpayments are allowed and borrowers can have a maximum of three buy-to-let properties. There’s an incentive offered of free valuation, too (remortgagors can also benefit from free legal fees).
You can find more of the best first time landlord BTL mortgages by heading to our chart, or for a more personalised look at your options, get free mortgage advice from our preferred mortgage broker Mortgage Advice Bureau. Just follow this link or call 0808 149 9177 to get started.
*Excludes linked accounts, existing customer deals, profession or location dependent accounts
Deal of the week
Online Flexi Saver
This internet-operated account from Investec Bank plc offers true easy access, offering unlimited access to your savings with further additions and withdrawals permitted 24/7. It and boasts a rate of 0.40% AER and pays interest monthly – interest can either be paid into a current account or added to your savings balance – all from a minimum investment of £5,000.
*Excludes existing customer only or location specific products
Representative example: £168,000 mortgage over 25 years initially at 2.35% variable for 24 months reverting to 5.20% variable for term. 24 monthly payments of £741.05 and 276 monthly payments of £981.85. Total amount payable £290,184.80 includes loan amount, interest of £120,776, valuation fees of £205 and product fees of £999. The overall cost for comparison is 4.9% APRC representative.
Deal of the week
60% LTV fixed remortgage
This 60% LTV remortgage from NatWest offers with a rate of 1.15% (3.2% APRC) that’s fixed to 31 August 2023 before reverting to 3.59% variable for term. It has a fee of £995, with free valuation and legal fees. It offers £200 cashback as an incentive and it permits overpayments as well.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Terms and Conditions apply
Representative Example: £178,000 mortgage over 25 years initially at 1.15% fixed for 27 months reverting to 3.59% variable for term. 27 monthly payments of £682.99 and 273 monthly payments of £879.88. Total amount payable £259,962.97 includes loan amount, interest of £80,648, valuation fees of £0 and product fees of £995. The overall cost for comparison is 3.2% APRC representative.
Savers to consider notice accounts for better rates
Those happy to give notice before making a withdrawal can earn 0.20% more from the best notice account rate currently available than from the best easy access rate. The top notice account is the 90 Day Notice Account from Moneycorp Bank at 0.65% compared to the best easy access account from Kent Reliance at 0.45%. Savers need to note that Moneycorp Bank is not FSCS protected and money is covered by the Gibraltar scheme. Find out more about the Gibraltar scheme in our guide to depositor protection.
First flexible secured loan in the UK launched
A new type of secured loan has been launched offering borrowers the option to draw down funds as and when they need them rather than taking one lump sum. This new loan, called the FlexiLoan, is the first of its type in the UK and is the creation of Selina Finance, a fintech lender. Borrowers receive a pre-approved credit limit and can draw down funds up to this as required. Interest is only charged when money is drawn down. All money borrowed is secured against the borrower’s home. The maximum LTV is 75%, with a minimum borrowing amount of £25,000 up to £1m. Borrowers interested in the loan should speak to our preferred secured loans broker, Loans Warehouse. You can request a call back or call them direct on 01923 660 296.
Be careful of choosing riskier pension investments
Historically low savings rates has led to one in five retirees considering riskier pensions and investments, according to research from the FSCS. The research also identified that more than a third had invested money since retiring and of these just over two-thirds knew these investments were protected by the FSCS. However, it was only a third of these that knew the exact amount of protection available. The FSCS is concerned that some are investing in riskier options without protection, while others may invest more than the FSCS compensation limits. Find out more about FSCS protection in our guide. Retirees wanting advice about their investments and pension can benefit from a free one-hour consultation with our preferred independent advice firm, Kellands Hale.
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Deal of the week
Travelling by bike has become increasingly popular, with more people choosing to take up cycling as a sporting hobby. Enjoying cycling as a sport usually comes with more expensive bikes and equipment and cycleGuard can provide cover for this. They protect cyclists and triathletes against theft and damage to all types of bike, including mountain, folding, electric and road. They also protect cycling accessories both inside and away from home. Policies can also be upgraded to include public liability, personal injury and for competitive racing. Find out more in our guide to bicycle insurance in the UK.
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