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Loads of Cash ?

Moneyfacts.co.uk

Saturday 18th May 2019

ISSN 2632-0797 (Online)

Savings           ISAs           Mortgages          Cards          Banking          Loans          Business

Competition boosts easy access rates

Easy access accounts are a popular choice among savers who are seeking flexibility, so it’ll come as welcome news that the best rates available have been on the rise in recent months.

 

The latest analysis by Moneyfacts.co.uk shows that the current top six easy access account rates now pay 1.47% on average, up from 1.44% six months ago and 1.26% a year ago (based on a £10,000 deposit), showing the improvement in the market. It’s now even possible to find several easy access deals paying 1.50% – something that was unheard of just a few months ago.

 

“It is encouraging to see competition heating up within the easy access market, as just a few brands opting to raise rates could lead to other providers also considering improving their offering,” said Rachel Springall, finance expert at Moneyfacts.co.uk. “Not only have rates in the easy access market improved over the past six months, but the easy access ISA market has also improved, with savers now seeing rates as high as 1.50%, equalling the top rate on offer from its non-ISA counterpart.”

 

See more on this story  and our Best Buy easy access deals …

 AERNotice / Term 

Easy Access
(no bonus)

1.50%

None

View
table

Easy Access
(with bonus)

1.50%

None

View
table

Fixed Rate Bonds

2.75%

5 Years

View
table

Fixed Rate ISAs

2.50%

7 Years

View
table

Variable Rate ISAs

1.50%

None

View
table

Regular Savings Account

3.50%

12 Months

View
table

Notice Accounts

1.91%

90 Days

View
table

Monthly Interest Accounts

1.87%

120 Days

View
table

Deal of the week

Two-year fixed rate ISA

Savers looking for a short-term home for their 2019/20 ISA allowance will be pleased with Aldermore’s 2 Year Fixed Rate Cash ISA.

 

Paying 1.80% yearly on deposits of £1,000 or more, this online-only ISA allows further additions for 14 days from account opening.

 

This ISA also permits withdrawals, although there is a 180-day interest penalty for doing so before its two-year anniversary.

The best regular savings accounts

Regular savings accounts offer attractive rates of interest but often come with restrictions. Here are the top three:

 

Top performer for regular savings this week is Saffron Building Society with its 12 Month Fixed Rate Regular Saver (Issue 3) paying 3.50% on maturity. This account requires a minimum deposit of £10 a month for 12 months, with a maximum monthly deposit of £200. It can be opened in branch, and existing members can also open the account by post or online, before then being able to be managed online, in branch and by post by all savers.

 

Monmouthshire Building Society takes second place with its Celebration Regular Saver Bond (Issue 14)paying 3.00% on maturity. While the account can be opened with just £20, earlier access to funds is only allowed upon closure of the account with the interest also reduced to the same rate as its Easy Saver account. The maximum monthly deposit is £300. The account, which must be opened in branch before then also being able to be managed by post and online, is restricted to those living in England and Wales.

 

Virgin Money also pays a rate of 3.00% yearly on its Regular Saver Issue 16. Both the minimum opening deposit and minimum monthly deposit are just £1, while the maximum monthly contribution is £250.  This account matures on 01.05.2020, at which time it will revert to Virgin Money’s Loyalty Reward account. It must be opened in branch, but can then also be managed by post.

 

Sainsbury’s Bank ups interest on Cash ISA

 

In a move that is sure to please savers, Sainsbury’s Bank this week announced that it has increased the interest rate on its easy access Cash ISA, which now pays 1.45% variable on its anniversary.

 

While the account can be opened with just £1, savers will need to deposit at least £500 to gain the new, higher rate (0.75% paid on balances below £500).

 

Transfers in are welcome from previous cash and stocks and shares ISAs, and similarly, further additions are allowed without restriction. Withdrawals are also permitted, as are penalty-free transfers away from the account, making it a true easy access deal.

 

This ISA can be both opened and managed online and over the phone.

 

See more of our Best Buy variable rate ISAs

Tracker mortgages: Time to go variable?

 

The latest Moneyfacts UK Mortgage Trends Treasury Report shows that average two-year variable tracker mortgage rate has fallen in the last month to stand at 2.02%, down 0.15% from the rate seen in September last year (a month after the Bank of England increased base rate to 0.75%). Meanwhile, 203 variable tracker rate mortgages are currently available, a rise of 18 products in the past month alone.  

 

“It appears that the increasing number of products this month, and intensifying competition, has driven the average two-year variable tracker rate down,” said Darren Cook, finance expert at Moneyfacts.co.uk. Of course, the average fixed rate will likely be greater than that of the average variable rate, as borrowers pay more for the certainty of monthly payments. The amount of interest a borrower is required to pay on a variable tracker rate mortgage could change over time, but any fluctuations in rate are likely to be linked to factors such as the Bank of England base rate – and markets are forecasting just a single interest rate increase by 2021.”

 

Despite the markets predicting only one base rate increase by 2021, those considering a variable rate tracker mortgage should always factor in any rate rises that could affect whether they can afford the repayments for the full length of their term, to avoid any nasty surprises later.

 

See more on this story  and our Best variable mortgage deals

 RatePeriodAPRC 

 Fixed Rate

1.54%

to
30/06/2021

4.2%

View
table

Discounted
Variable

1.54%

2 Years

4.8%

View
table

 Variable &
 Tracker

2.05%

Term

2.2%

View
table

First-Time
Buyer

1.99%
(DV)

2 Years

4.7%

View
table

Remortgage

1.43%
(V)

to 
31/10/2021

4.1%

View
table

Buy-to-let

1.48%
(F)

to
30/06/2021

4.7%

View
table

 

Rep Example: £150,000 mortgage over 25 years initially at 1.99% variable for 24 months reverting to 5.34% variable for term. 24 monthly payments of £635.05 and 276 monthly payments of £885.42. Total amount payable £261,006.12 includes loan amount, interest of £109,617, valuation fees of £220 and product fees of £999. The overall cost for comparison is 4.9% APRC representative.

 

  

Deal of the week

Two-year discounted variable 

mortgage

Looking for a discounted variable mortgage? This one from Leeds Building Society could be ideal. Available with a 25% deposit (75% loan-to-value), the rate of 1.54% (4.15% discount) applies for two years before reverting to another discounted variable rate of 4.69% for three years (1% discount), and then a variable rate of 5.69% for term. It’s fee-free and includes the incentive of free valuation up to £999, as well as help towards costs for remortgagors.

 

Rep example: £150,000 mortgage over 25 years initially at 1.54% variable for 24 months reverting to 4.69% variable for 36 months and 5.69% variable for term. 24 monthly payments of £602.73, 36 monthly payments of £830.03 and 240 monthly payments of £901.96. Total amount payable £261,066.00 includes loan amount, interest of £110,817, valuation fees of £0 and product fees of £0. The overall cost for comparison is 4.8% APRC representative.

Best five-year buy-to-let mortgages

A five-year fixed rate buy-to-let mortgage can be a good option for landlords who want to to lock in their monthly repayments for the long-term.

 

Virgin Money sits top of our five-year fixed rate buy-to-let mortgage Best Buy chart offering a rate of 2.01% fixed until 1 September 2024 before reverting to a rate of 5.19% variable for term. This deal carries an arrangement fee of £1995. It does however include the incentives of free valuation and £300 cashback or free legal fees for remortgage customers, while second-time buyers get £500 cashback.

Second place is NatWest offering a rate of 2.13% fixed until 31 October 2024, before reverting to an existing borrower’s rate of 4.74% variable for the remainder of the mortgage. This deal, which is for first and second-time buyers with a 40% deposit/equity (60% loan-to-value) has a fee of £995. It also permits overpayments.

 

Leeds Building Society rounds off the top three with a rate of 2.15% fixed to 31 August 2024, at which point it reverts to an existing borrower’s rate of 5.99% variable for term. This mortgage is for second-time buyers and remortgagors with a 40% deposit/equity (60% loan-to-value) and has a fee of £999. This is however partially offset by a free valuation (up to £999), while remortgage customers also get help towards costs.

Borrowers reap benefits of HSBC rate cut

 

This week, HSBC has reduced the rates on several of its mortgage products, including its three-year fixed rate deal. Now offering a rate of 2.09% fixed until 31 July 2022, before reverting to an existing borrowers’ rate of 4.19% variable, this product is available to all customers who wish to borrow between £10,000 to £400,000 and who have a deposit/equity of at least 10% (90% loan-to-value).

 

The deal comes with a fee of £999, although this is partially offset by its incentive package, which includes free valuation, and remortgagers also get free legal fees. Borrowers can also overpay by up to 20% each month.

 

See more of our Best Buy three-year fixed rate mortgage deals

Rewards return to credit card market

 

Reward credit cards can be a great way to get something back from your everyday spending. We’ve compiled a list of a few of the improvements to hit the market since the start of May:

 

• HSBC’s new Rewards Credit Card Mastercard for existing customers is offering 2,500 bonus reward points (worth £25) after the first transaction as well as one point for every £5 spent thereafter. Shoppers can earn 2,500 additional reward points on the anniversary of the account opening if £10,000 has been spent in the previous year for the first five years.  

• ASDA’s Cashback Credit Card Mastercard offers the chance to earn 1% back on all Asda spending and 0.2% elsewhere, as well as 10% on selected insurance products  (which can be converted into shopping vouchers when you hit a certain amount). It also now has the added an incentive of £5 off when £300 is spent on foreign currency from ASDA Travel Money until 31 May.

• The John Lewis and Waitrose Partnership Mastercard now has an added incentive, too, offering a £25 bonus voucher in the first 90 days of account opening if £200 is spent in store or online. Shoppers will also earn one point for every £1 spent at John Lewis, Waitrose and John Lewis Insurance, as well as one point for every £2 spent elsewhere, with every 500 points worth £5 in shopping vouchers, with its standard rewards programme.

 

See more on this story and our best reward credit card deals

 Total
Amount
Repayable
Monthly
Payment
Rep.
APR
 

£5,000
over 3
years

£5,262.12

£146.17

3.4%

View
table

Representative Example: Based on a loan of £5,000 at 3.40% per annum fixed. Representative 3.4% APR. Total amount repayable £5262.12 at £146.17 per month for 36 months.

£7,500
over 5
years

£8,058.60

£134.31

2.9%

View
table

Representative Example: Based on a loan of £7,500 at 2.90% per annum fixed. Representative 2.9% APR. Total amount repayable £8058.60 at £134.31 per month for 60 months.

£10,000
over 5
years

£10,744.20

£179.07

2.9%

View
table

Representative Example: Based on a loan of £10,000 at 2.90% per annum fixed. Representative 2.9% APR. Total amount repayable £10744.20 at £179.07 per month for 60 months.

Deal of the week

Low standard rate credit card

This week’s credit card deal is the Clubcard Credit Card with Low APR Mastercard from Tesco Bank.

 

Currently sitting at the top of our low-rate comparison chart with an APR of just 5.9%, it also features an introductory offer on both balance transfers and purchases of one month interest-free, and enables you to take advantage of Tesco’s Clubcard reward scheme. Applicants must be aged 18 or over with an income of at least £5,000.

     

Rep example: Based on a credit limit of £1200.00 charged at 5.94% variable per annum for purchases. Representative 5.9% APR variable.

Deal of the week

Award-Winning Secured Loan Broker

If you’re looking to make improvements to your home or wish to raise money to consolidate your existing debt at a lower monthly payment, a secured loan can be the perfect option and, depending on your credit record, it may be cheaper than you think, with rates from just 3.65% and loan terms available from three to 30 years.

 

Loans Warehouse searches more than 300 loan products from the UK’s best secured loan providers to find the most suitable loan, even if you believe your credit rating is poor.

Best 0% interest credit cards

 

Need a credit card that gives you 0% interest periods for both balance transfers and purchases? We’ve got the top three here:

 

Barclaycard takes the top position in our Best Buy charts with its Platinum 28 Month Purchase and Balance Transfer Visa. This card offers 0% interest for 28 months for both balance transfers and purchases, with a balance transfer fee of 2.70%. Applicants must be at least 21 years of age and have a minimum yearly income of £20,000. This card can be applied for online, by post and by phone.

 

Alternatively, the MBNA 0% Transfer and Purchase Credit Card Mastercard offers a fractionally shorter interest-free period of 27 months but comes with a lower balance transfer fee of 2.69%. In addition, if you need some extra cash to top up a bank account, this card offers a 0% interest period of 12 months for money transfers, with a 4.00% fee. Applicants must be aged 18 or over and apply online.

 

Completing our top three is the Sainsbury’s Bank’s Dual Offer Credit Card Mastercard. With another 27-month interest-free period for both balance transfers and purchases, this card has a 3.00% charge for balance transfers with a £3.00 minimum. There is no minimum income requirement, but borrowers applying for this card must be aged 18 or over and can apply online or by phone.

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