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Caitlyn Eastell

Apprentice Press & PR Assistant
Published: 16/05/2024
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Last updated: 16 May 2024 at 09:10

The Moneyfactscompare.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market, ranging from mortgages to savings accounts. This week I've analysed the following deals, along with their perks.

Savings

Hodge Bank

This week, Hodge Bank has increased the rate on its 1 Year Fixed Rate Bond improving its overall position in the market. The account now pays a competitive 5.14% gross/AER on its maturity. Alternatively, savers can select a monthly interest payment option which pays 5.02% gross/5.14% AER.

It is important that savers are comfortable with locking their investments in for the full term as early access is not permitted, but they may be glad to see that they can take advantage of making further additions 14 days from the account opening. Overall, the deal earns an Excellent Moneyfacts product rating.

 

  • Hodge Bank – 1 Year Fixed Rate Bond
    • Rate: 5.14% gross / 5.14% AER, payable on maturity / monthly interest option of 5.02% gross / 5.14% AER also available
    • Notice / term: One year
    • Minimum opening amount: £1,000
    • Maximum investment amount: £1 million
    • Access: Not permitted
    • Further additions: Permitted for 14 days from account opening via nominated account
    • Opening account: Online
    • Managing account: Online
    • Other information: Minimum applicant age 18.

OakNorth Bank

OakNorth Bank has increased the rate on its 12 Month Fixed Rate Cash ISA this week. It retains a competitive position in the fixed ISA market when compared to other products of a similar term. The deal pays 4.63% gross/4.73% AER monthly, which may be ideal for those looking to boost their income each month.

Investors who wish to utilise their ISA allowance and are comfortable with locking their cash away for the full term may find this an appealing choice. However, it is wise for investors to note that the account must be funded within 30 days of account approval, or it will be closed. Overall, this deal earns an Excellent Moneyfacts product rating.

 

  • OakNorth Bank – 12 Month Fixed Rate Cash ISA
    • Rate: 4.63% gross / 4.73% AER, payable monthly
    • Notice / term: 12 months
    • Minimum opening amount: £1
    • Maximum investment amount: ISA allowance
    • Access: Permitted, subject to 90 days’ loss of interest penalty
    • Further additions: Permitted for 30 days from account opening
    • Transfers in: Permitted for 30 days from account opening. Accepts Cash ISAs
    • Transfers out: Permitted, subject to 90 days’ loss of interest penalty
    • Opening account: Online and via its mobile app
    • Managing account: Online and via its mobile app
    • Other information: Minimum applicant age 18. Account must be funded within 30 days of account approval or it will be closed.

Beehive Money

Beehive Money has launched a new two-year fixed rate cash ISA. It takes a competitive position in the fixed ISA market paying 4.60% until 30th June 2026. Savers will only need a £500 minimum investment and they may also be glad to see that further additions can be paid in for the duration of the issue being open.

Although earlier access is permitted on transfers out, they are subject to 180 days loss of interest penalty, so this is important for investors to consider. Overall, the deal earns an Excellent Moneyfacts product rating.

 

  • Beehive Money – Two Year Fixed ISA
    • Rate: 4.60% gross / 4.60% AER payable yearly
    • Notice / term: 30 June 2026
    • Minimum opening amount: £500
    • Maximum investment amount: ISA allowance
    • Access: Permitted, subject to transfers out only on 180-day loss of interest penalty
    • Further additions: Permitted, whilst issue remains open
    • Transfers in: Permitted whilst issue remains open. Accepts Cash ISAs
    • Transfers out: Permitted, subject to 180-day loss of interest penalty
    • Opening account: Online and via mobile app
    • Managing account: Online and via mobile app
    • Other information: Minimum applicant age 18.

GB Bank

This week GB Bank has launched a new 5-year Fixed Term Deposit on the Raisin UK platform. The deal pays an appealing 4.55% to savers who have a minimum of £1,000 to invest. As is common in the fixed market, earlier access and further additions are not permitted so it is important that investors are comfortable with locking their cash in for the full five years.

The deal secures a prominent position in our top tables and earns an Excellent Moneyfacts product rating.

 

  • GB Bank – Raisin UK – 5 Year Fixed Term Deposit
    • Rate: 4.55% gross / 4.55% AER payable on maturity
    • Notice / term: Five years
    • Minimum opening amount: £1,000
    • Maximum investment amount: £85,000
    • Access: Not permitted
    • Further additions: Not permitted
    • Opening account: Online, via the Raisin UK platform and via mobile app
    • Managing account: Online and via mobile app
    • Other information: Minimum applicant age 18.

Mortgages

MPowered Mortgages

MPowered Mortgages has reduced its two and five year fixed rates for house purchase customers this week. The two-year deal at 60% loan-to-value has seen a cut of 0.18% and is now priced at a competitive 4.89%; it is available through selected intermediaries.

Borrowers may well find this deal an enticing option if they are trying to save on upfront costs as there is no product fee charged and it has a free valuation incentive attached. The reduction, along with its fee and incentive package, enhances its position and earns an Outstanding Moneyfacts product rating.

  • Two-year fixed rate mortgage, 60% loan-to-value
    • Rate: 4.89% fixed rate for two years, reverting to 8.74%
    • APRC: 8.2%
    • Product fee: None
    • Maximum loan-to-value: 60%
    • Available to: House purchase customers
    • Incentives: Free valuation
    • Flexible features: Allows overpayments
    • Lending area: England and Wales. Available through selected intermediaries.

    Representative example: £218,000 mortgage over 25 years initially at 4.89% fixed for 24 months reverting to 8.74% variable for term. 24 monthly payments of £1260.47 and 276 monthly payments of £1756.62. Total amount payable £515,128.40 includes loan amount, interest of £297,078, valuation fees of £0 and product fees of £0. The overall cost for comparison is 8.2% APRC representative.

Buy-to-Let Mortgages

Santander

Santander has launched a new two-year variable tracker product this week. Available at 75% loan-to-value for second-time buyers and remortgage customers through selected intermediaries.

The deal is priced at a competitive 5.64% for the full term and may entice landlords with its incentive package which includes a free valuation for all borrowers but those remortgaging will see an added free legal fees or £250 cashback incentive attached. However, it is worth noting that there is a £1,999 product fee associated with the deal. Overall, the deal earns an Excellent Moneyfacts product rating.

  • Santander – Two-year variable tracker rate mortgage, 75% loan-to-value
    • Rate: 5.64% variable tracker rate (BBR + 0.39%) for two years, reverting to 7.50%
    • APRC: 
    • Product fee: £1,999
    • Maximum loan-to-value: 75%
    • Available to: Second-time buyers and remortgage customers
    • Incentives: Free valuation for all borrowers and free legal fees or £250 cashback for those remortgaging
    • Flexible features: Allows overpayments
    • Lending area: Great Britain, Northern Ireland. Available through selected intermediaries.

    Representative example: £140,625 mortgage over 25 years initially at a tracker rate of 5.64% variable for 24 months reverting to 7.50% variable for term. 24 monthly payments of £660.94 and 276 monthly payments of £878.91. Total amount payable £401,340.72 includes loan amount, interest of £258,442, valuation fees of £0 and product fees of £1999. The overall cost for comparison is 7.6% APRC representative.

Banking

Santander

For customers looking to switch their current account provider, Santander has introduced a new switching incentive this week on a handful of its current accounts, including its Santander Edge Up current account. Customers who switch using the CASS (Current Account Switch Service) will now receive £175 cashback following certain conditions.

Adding to its appeal, the card also offers 3.45% gross interest on balances of up to £25,000 alongside offering 1% cashback on household bills, although the account does come with a £5 monthly fee, which some customers may wish to consider. As is the case when switching to any account, customers will need to assess all the benefits and charges to ensure it’s the right choice for them. Overall, the account earns an Outstanding Moneyfacts product rating.

  • Santander – Santander Edge Up current account
    • Credit interest / reward: 3.45% gross interest on balances up to £25,000
    • Cashback on debit card purchases: 1% cashback on debit card spend at transport and grocery merchants. Capped at £15 per month.
    • Account fee: £5 per month
    • Arranged overdraft: 39.94% EAR, plus interest-free for four months on switched current accounts
    • Opening account: Online, in branch
    • Managing account: Online, in branch, by post, via mobile app, at the Post Office, and via text alerts
    • Other information: Minimum applicant age 18. £175 cashback for accounts switched when two direct debits are set up, £1,500 paid in and logged into online or mobile banking within 60 days of switching using the Current Account Switch Service. Exclusive offers available, sign up for Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers. Customer must be signed up to online and mobile banking to qualify.

    Representative example: Based on an overdraft limit of £1200 charged at 39.94% EAR Variable. Representative 39.9% APR variable.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.