25 Apr 2024

Moneyfacts Pick of the Week 22/09/2011

The Moneyfacts Pick of the Week showcases the best of the latest products to hit the consumer finance market.

Brief product details together with independent Moneyfacts analysis can be used with confidence in your finance sections. You can select one or two products to sit beside a relevant story or use them all as a general feature.

Savings

Aldermore

Aldermore has launched a competitive range of notice accounts. Its 120 Day Notice account pays 3.20% sits just below the market leader. Between £1,000 and £1m can be invested in the account, which is operated by post, telephone or online. As the name suggests, savers must give 120 days’ notice to make a withdrawal, as earlier access is not permitted.

If savers don’t need instant access to their money, but want to benefit from rate rises when they happen then the new account from Aldermore could be a competitive option. The account offers the option of monthly income, which will appeal to savers who want to earn a regular income from their money.

Nottingham Building Society

The new E-Saver account from Nottingham Building Society pays 1.81%, but if savers keep the account open until 31 August 2012 a further 1.45% bonus will be payable taking the rate up to 3.26%. Savers can invest between £500 and £250,000 into the online operated account. No notice is required to access funds, but all withdrawals must be made via a nominated account.

In the current easy access market a rate of 3.26% is market leading. As the account is operated online, savers across the UK can benefit from such a competitive rate and not just those within the Nottinghamshire area where the building society has a small branch network.

Mortgages

Leeds Building Society

Leeds Building Society has reduced selected mortgage rates by up to 0.86%. The biggest reduction is on its five year fixed rate mortgage, which now charges 4.59% to 30 November 2016. The mortgage has a maximum loan-to-value of 85% and is subject to a low £199 fee. Borrowers benefit from an incentive of free valuation (maximum £335) and for remortgagers free legal fees.

The new mortgage from Leeds Building Society is one of the most competitive offerings for borrowers with at least a 15% deposit. The attractive incentive package will help keep set-up costs to a minimum. Borrowers must take the lender’s buildings and contents insurance, otherwise the rate is loaded by 0.24%.

Santander

Santander has reduced selected mortgage rates by up to 1.10%. Its two-year fixed rate deal charges 3.19% to 2 November 2013. The deal is available up to a maximum loan-to-value of 75% and, unlike on the majority of mortgages, no arrangement fee is payable. Borrowers benefit from a free valuation (maximum £1,190) and free legal fees or a £250 rebate.

On rate alone this deal is by no means the lowest in this sector, but the lack of arrangement fee means that on true cost the mortgage becomes one of the most competitive. The attractive incentive package boosts the overall appeal of the deal.

Credit Cards

Virgin Money

Virgin Money has increased the length of its interest free balance transfer period on its Credit Card MasterCard. The card now offers 0% for 20 months (previously 19 months), subject to a 2.99% fee, minimum £3. No interest is payable on new purchases for the first three months. After any introductory deals end the rate reverts to 16.8% APR.

Sitting just below the market leader for balance transfers, the Virgin Money Credit Card MasterCard holds wide appeal. Providing customers repay the transferred debt within 20 months they can avoid paying additional interest. The revert to 16.8% APR is below average, which increases the appeal of the card.

Sainsbury’s Finance

Sainsbury’s Finance has launched its Low Rate Credit Card charging a market leading 6.9% APR. Customers can transfer balances from other cards at the standard rate, with no balance transfer fee being applied. The card would suit those who occasionally leave a balance on their card or those looking to transfer and existing balance, but can’t pay it off within the introductory period.

The new Sainsbury’s Finance Low Rate Credit card charges the lowest APR on the market and is 1.0% lower than its nearest rival from Barclaycard. Since the start of the year the credit card market has seen a lot of activity in the introductory balance transfer market, so it is good to see Sainsbury’s bucking the trend and offering other options to customers.

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

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