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Moneyfacts Pick of the Week - 12/05/2022

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Eleanor Williams, Press Officer
Eleanor Williams, Press Officer / Finance Expert T: 01603 476205 E: Email Eleanor
12/05/2022

Moneyfacts Pick of the Week

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes 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 provided they are sourced to our expert at Moneyfacts.co.uk.

This week, our resident Finance Expert, Eleanor Williams, has analysed the following deals, along with their perks, of note:

Moneyfacts Pick of the Week

The Moneyfacts.co.uk Pick of the Week showcases the best of the latest products or rate changes 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 provided they are sourced to our expert at Moneyfacts.co.uk.

This week, our resident Finance Expert, Eleanor Williams, has analysed the following deals, along with their perks, of note:

Savings

Al Rayan Bank – 12 Month Fixed Term Deposit

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“Savers looking for a short-term fixed savings account may wish to note that Al Rayan has increased the rate on its 12 Month Fixed Term Deposit in the latest update. Now paying an expected profit rate of 2.26%, this account improves its position and holds a prominent spot in our top rate tables when compared to other accounts with similar terms. Investors may want to consider that neither additions nor earlier access to funds are permitted, as is common with these types of account, so they would need to be comfortable securing their savings away for the term. Savers can opt to take the quarterly profit as an income at a reduced rate, which may be a further plus for some. This account receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.26% gross / 2.27% AER payable quarterly
  • Notice / term: 12 months
  • Minimum opening amount: £5,000
  • Maximum investment amount: £999,999
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online, by phone and via its mobile app
  • Managing account: Online, by phone and via its mobile app
  • Other information: Minimum applicant age 16. Joint account option available. Sharia’a compliant account – rates shown are expected profit rate. Quarterly profit can be taken as an income with a reduced rate.

 

Secure Trust Bank – 3 Year Fixed Rate Bond

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“One of the accounts to receive a rate increase from Secure Trust Bank this week is the 3 Year Fixed Rate Bond. Rising to now pay 2.60% yearly, this account improves its position in the top 10 when compared to other bonds with similar terms currently available. This account could well be a tempting option for those looking for a competitive rate of return and who are comfortable securing their savings pot away for the term. Unlike many similar accounts, this product does allow savers to make further additions for 30 days from the account opening, which could be another plus for some. Overall, this account receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.60% gross / 2.60% AER payable yearly
  • Notice / term: 16.6.25
  • Minimum opening amount: £1,000
  • Maximum investment amount: £1 million
  • Access: Not permitted
  • Further additions: Permitted for 30 days from account opening, from a minimum of £1,000
  • Opening account: Online
  • Managing account: Online and by phone
  • Other information: Minimum applicant age 18. Joint account option available.

 

Buy-to-Let Mortgages

Virgin Money – Five-year fixed rate mortgage, 60% loan-to-value

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“In addition to increasing various rates, Virgin Money has launched a new intermediary exclusive product for landlords this week. Priced at 2.40% and fixed until 1 August 2027, this option is available at 60% loan-to-value for both those purchasing a rental property and those refinancing an existing one. The combination of competitive initial rate, reasonable fee and generous incentive package could well suit those looking to save on the upfront cost of their new mortgage deal and secure a mid-term fixed rate to protect them from future interest rate volatility. Overall, this receives a place in our top tables for intermediaries and earns an Outstanding Moneyfacts product rating.”

Key product details:

  • Rate: 2.40% fixed rate to 1.8.27
  • Product fee: £1,295
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments.
  • Lending area: England and Wales. Available via intermediaries.

 

HSBC – Five-year fixed rate mortgage, 75% loan-to-value

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“One of the products to be amended in HSBC’s latest update is a five-year fixed rate for landlords looking to purchase a rental property. Following an increase of 0.10%, this product is now priced at 2.49% until 31 July 2027. Despite the rise in rate, when considered as a whole, the combination of initial rate, incentive of a free valuation and the unchanged product fee ensure that this deal maintains a position in our top tables and receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.49% fixed rate to 31.7.27
  • Product fee: £1,999
  • Maximum loan-to-value: 75%
  • Available to: Second-time buyers (remortgage version also available) 
  • Incentives: Free valuation
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain and Northern Ireland.

 

Banking

HSBC – Advance Current Account

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“This week sees HSBC launch a new switching incentive of £170 for consumers who switch to either the Advance or Premier current account. To be eligible for the incentive, new customers need to switch at least two Direct Debits or Standing Orders using the Current Account Switch Service (CASS) within 30 days of opening the account, and they need to fund the account with at least £1,500 within 60 days of opening the account. This upfront perk may well be enticing, and the Advance account is a straight-forward option with no monthly fee which could well suit some consumers. As well as the Home&Away programme, which gives holders various offers on shopping, dining, experiences etc, this account also offers a £25 interest-free buffer. However, cheaper overdraft tariffs can be found elsewhere, so consumers would be wise to carefully think about their priorities and consider the whole package any account offers. On balance, the account earns an Excellent Moneyfacts product rating.”

Key product details:

  • Credit interest / reward: None
  • Cashback on debit card purchases: None
  • Account fee: None
  • Arranged overdraft: 39.90% EAR
  • Opening account: Online and in branch
  • Managing account: Online, in branch, via mobile app, post office and text alerts
  • Other information: Minimum applicant age 18. £170 free cash offer, using the Current Account Switch Service.

Savings

Al Rayan Bank – 12 Month Fixed Term Deposit

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“Savers looking for a short-term fixed savings account may wish to note that Al Rayan has increased the rate on its 12 Month Fixed Term Deposit in the latest update. Now paying an expected profit rate of 2.26%, this account improves its position and holds a prominent spot in our top rate tables when compared to other accounts with similar terms. Investors may want to consider that neither additions nor earlier access to funds are permitted, as is common with these types of account, so they would need to be comfortable securing their savings away for the term. Savers can opt to take the quarterly profit as an income at a reduced rate, which may be a further plus for some. This account receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.26% gross / 2.27% AER payable quarterly
  • Notice / term: 12 months
  • Minimum opening amount: £5,000
  • Maximum investment amount: £999,999
  • Access: Not permitted
  • Further additions: Not permitted
  • Opening account: Online, by phone and via its mobile app
  • Managing account: Online, by phone and via its mobile app
  • Other information: Minimum applicant age 16. Joint account option available. Sharia’a compliant account – rates shown are expected profit rate. Quarterly profit can be taken as an income with a reduced rate.

 

Secure Trust Bank – 3 Year Fixed Rate Bond

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“One of the accounts to receive a rate increase from Secure Trust Bank this week is the 3 Year Fixed Rate Bond. Rising to now pay 2.60% yearly, this account improves its position in the top 10 when compared to other bonds with similar terms currently available. This account could well be a tempting option for those looking for a competitive rate of return and who are comfortable securing their savings pot away for the term. Unlike many similar accounts, this product does allow savers to make further additions for 30 days from the account opening, which could be another plus for some. Overall, this account receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.60% gross / 2.60% AER payable yearly
  • Notice / term: 16.6.25
  • Minimum opening amount: £1,000
  • Maximum investment amount: £1 million
  • Access: Not permitted
  • Further additions: Permitted for 30 days from account opening, from a minimum of £1,000
  • Opening account: Online
  • Managing account: Online and by phone
  • Other information: Minimum applicant age 18. Joint account option available.

 

Buy-to-Let Mortgages

Virgin Money – Five-year fixed rate mortgage, 60% loan-to-value

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“In addition to increasing various rates, Virgin Money has launched a new intermediary exclusive product for landlords this week. Priced at 2.40% and fixed until 1 August 2027, this option is available at 60% loan-to-value for both those purchasing a rental property and those refinancing an existing one. The combination of competitive initial rate, reasonable fee and generous incentive package could well suit those looking to save on the upfront cost of their new mortgage deal and secure a mid-term fixed rate to protect them from future interest rate volatility. Overall, this receives a place in our top tables for intermediaries and earns an Outstanding Moneyfacts product rating.”

Key product details:

  • Rate: 2.40% fixed rate to 1.8.27
  • Product fee: £1,295
  • Maximum loan-to-value: 60%
  • Available to: Second-time buyers and remortgage customers
  • Incentives: Free valuation, and for those remortgaging free legal fees
  • Flexible features: Allows overpayments.
  • Lending area: England and Wales. Available via intermediaries.

 

HSBC – Five-year fixed rate mortgage, 75% loan-to-value

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“One of the products to be amended in HSBC’s latest update is a five-year fixed rate for landlords looking to purchase a rental property. Following an increase of 0.10%, this product is now priced at 2.49% until 31 July 2027. Despite the rise in rate, when considered as a whole, the combination of initial rate, incentive of a free valuation and the unchanged product fee ensure that this deal maintains a position in our top tables and receives an Excellent Moneyfacts product rating.”

Key product details:

  • Rate: 2.49% fixed rate to 31.7.27
  • Product fee: £1,999
  • Maximum loan-to-value: 75%
  • Available to: Second-time buyers (remortgage version also available) 
  • Incentives: Free valuation
  • Flexible features: Allows overpayments.
  • Lending area: Great Britain and Northern Ireland.

 

Banking

HSBC – Advance Current Account

Commenting on the deal, Eleanor Williams, Finance Expert at Moneyfacts.co.uk, said:

“This week sees HSBC launch a new switching incentive of £170 for consumers who switch to either the Advance or Premier current account. To be eligible for the incentive, new customers need to switch at least two Direct Debits or Standing Orders using the Current Account Switch Service (CASS) within 30 days of opening the account, and they need to fund the account with at least £1,500 within 60 days of opening the account. This upfront perk may well be enticing, and the Advance account is a straight-forward option with no monthly fee which could well suit some consumers. As well as the Home&Away programme, which gives holders various offers on shopping, dining, experiences etc, this account also offers a £25 interest-free buffer. However, cheaper overdraft tariffs can be found elsewhere, so consumers would be wise to carefully think about their priorities and consider the whole package any account offers. On balance, the account earns an Excellent Moneyfacts product rating.”

Key product details:

  • Credit interest / reward: None
  • Cashback on debit card purchases: None
  • Account fee: None
  • Arranged overdraft: 39.90% EAR
  • Opening account: Online and in branch
  • Managing account: Online, in branch, via mobile app, post office and text alerts
  • Other information: Minimum applicant age 18. £170 free cash offer, using the Current Account Switch Service.

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert