Product Spotlight: 18-month fixed rate bonds
Looking for a top savings rate without a long-term commitment? An 18-month fixed rate bond could be the perfect compromise. Here are the top deals currently available.
In first place is OakNorth Bank, with its 18-month Fixed Term Deposit paying a market-leading 1.04% AER on maturity (compounded annually) from a minimum opening investment of just £1. Further additions are welcome within 14 days of account opening, though access to funds won’t be possible before the end of the term. The account can be both opened and operated online or by mobile app.
Next up is Shawbrook Bank, with 18 Month Fixed Rate Bond Issue 24 paying 1.02% AER either on its anniversary or on a monthly basis. Savers will need to deposit at least £1,000 in order to open the account, after which further additions are welcome while the issue remains open, but no withdrawals will be allowed. The account must be applied for online, after which it can be managed by phone as well.
Hampshire Trust Bank is close behind with 18 Month Bond (Issue 8) paying 0.96% AER on its anniversary from a minimum of £1,000. Further additions are welcome for 14 days from account opening, but no earlier access will be possible. Savers can open the account online or by phone and can then manage it by post as well. Find out more or apply by going straight to the provider’s website.
Alternatively, for those who are seeking a Sharia-compliant account, Bank of London and The Middle East (BLME) pays the next-best expected profit rate of 0.95% AER on its Premier Deposit Account. Profit is paid on the anniversary of account opening and it requires a minimum investment of £1,000, after which neither further additions nor withdrawals will be possible. Savers must open the account online before managing it by post, and must have or open a BLME transfer account to hold funds pending investment. Find out more on the provider’s website.
Find more of the best 18-month bonds on our chart.
Product spotlight: 75% LTV remortgages
If you’re looking to remortgage and have got 25% equity in your property, you’ll want to find the best 75% loan-to-value (LTV) remortgages to accommodate. Here are the top three.
First up is a mortgage from NatWest Intermediary Solutions, which offers an initial discounted variable rate of 1.05% (3.2% APRC) until 31 August 2023 before reverting to 3.59% variable. Exclusively available to remortgage customers via a mortgage broker, the deal comes with a fee of £995 and offers an incentive package of free valuation and legal fees, and it permits overpayments for some additional flexibility.
Next up is Platform, with a 75% LTV deal priced at 1.07% (3.9% APRC) fixed to 31 August 2023 before reverting to 4.34% variable for term. Another broker-only deal, it has a fee of £1,499 and has incentives of free valuation and legal fees as well as £250 cashback, with overpayments again welcome. Speak to our broker partner to find out more.
TSB completes this overview with a fixed rate of 1.14% (3.3% APRC) that reverts to 3.59% variable on 31 August 2023. The fee is £1,495 and it offers free valuation and legal fees, and it permits both overpayments and payment holidays.
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Savers urged to switch for the best easy access savings rates
Of the 15 most popular bank and building societies, just six offer rates able to beat the average easy access saving rate of 0.17% and seven fail to pay more than the Bank of England base rate (0.10%), revealing how important it is for savers to switch to ensure they get the best possible returns. Indeed, many of the top high street banks pay as little as 0.02% on their easy access accounts, while challenger banks are proving to be much more competitive.
In fact, the majority of banks paying the top easy access rate of 0.50% AER are likely to be unfamiliar, with Charter Savings Bank, Cynergy Bank, ICICI Bank UK as well as Virgin Money all paying the market-leading rate. Of course, there are exceptions – Nationwide Building Society’s 1 Year Triple Access Online Saver 12 and Yorkshire Building Society’s Annual Access Account both pay a highly competitive 0.45% AER, albeit with additional withdrawal restrictions – but overall it may be time for consumers to “re-think their decision-making and relinquish any sentiment towards well-known brands,” said Rachel Springall, finance expert at Moneyfacts.co.uk. “Even in a low-rate environment, it is clear to see how savers can be better off by switching.”
Should you lock into a sub-1% remortgage rate?
With well-known high street mortgage lenders such as HSBC, TSB and Platform all offering remortgage rates below 1%, many homeowners will understandably be tempted. For some, locking into a two-year mortgage with a sub-1% rate will be a great option, but that doesn’t mean it’s the right move for everyone – attention-grabbing headline rates are used by mortgage lenders to attract borrowers, but there are a number of factors beyond this that can impact the overall cost of the mortgage, from the fees to SVRs. It’s these factors that need to be carefully considered before borrowers can determine whether or not these sub-1% deals will be the best option for their needs, as we discuss in this article.
Five reasons not to panic about your credit score
Being aware of credit scores can be a good way of assessing the likelihood of being accepted for a loan, credit card or mortgage, but consumers who see small sudden falls in their score should not let it deter them from applying for credit. Instead, it is important to understand how lenders view credit scores, other factors they consider when lending money, and why it is important not to panic if a credit score falls unexpectedly. Here, we discuss five reasons not to panic about your credit score – and when you perhaps should.
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Deal of the week
Car insurance is a fact of life for anyone on the road, but that doesn’t mean you want to spend a fortune on adequate protection. That’s where Admiral can come in. Boasting five-star rated cover, their comprehensive policies include a great range of features as standard, including windscreen repair, a courtesy car, European cover and even personal injury cover, with a 24-hour emergency helpline and multi-car discount only adding to the benefits. Find out more and get a quote today.