Check out this week’s best new financial deals

Savings

Hampshire Trust Bank has increased the rate on its two-year fixed-rate bond, which now pays 2.1% on its anniversary. Savers can invest between £1,000 and £250,000. Additions and early access to funds are not permitted. This deal is for savers aged 18 and over and can be operated by post only.

It’s good because: This is highly competitive and sits comfortably in the best-buy tables. This could be a popular choice for savers looking for a straightforward rate for the shorter term.

 

BM Savings has increased the rate on its easy-access account, which now pays a variable rate of 1.5% on its anniversary, including a bonus of 1% for 12 months. Savers can invest between £1,000 and £1m. Additions and unlimited penalty-free withdrawals are permitted. This deal is for savers aged 18 and over and can be operated online only.

It’s good because: This deal heads straight to the top of its sector and it could be a good option for those looking to kick-start their savings habit.

 

Mortgages

First Direct has reduced its five-year fixed rate, which is now priced at 2.19%. This deal is for customers who borrow between £10,000 and £1m at 65% loan-to-value (LTV). There is an upfront fee of £950. There are free legal fees for remortgage customers, and all borrowers are allowed to make overpayments. New banking customers must open a current account alongside the mortgage in order to access this deal.

It’s good because: This rate is highly competitive and is one of the five lowest rates in its sector. The added benefits of a reasonable fee and a great incentives package for those remortgaging mean this could be a cost-effective choice for many borrowers.

 

The Co-operative Bank has amended its two-year fixed-rate mortgage, which is now priced at 1.59% until August 2017. This deal is for customers who borrow more than £25,000 at 70% LTV. There is a fee of £1,499, of which £1,349 can be added to the mortgage advance. All borrowers can benefit from a free valuation, while free legal fees are also offered to remortgage customers. Overpayments of up to 10% of the outstanding balance are allowed, as are underpayments and withdrawing lump sums.

It’s good because: Borrowers looking for a low rate might like this update from the Co-op. The rate sits towards the top of the market and there is a generous incentives package.