Pick of the week

Check out this week’s best new financial deals

Savings

Virgin Money has increased the rate on its five-year fixed-rate Isa, which now pays 2.51%. Savers can invest from £1. Additions are permitted for up to 30 days after the account has been opened while early access to funds is allowed, subject to a penalty of 180 days’ loss of interest. Transfers in from both cash and stocks & shares Isas are accepted. This deal is for savers aged 16 and over and can be operated in branch and by post. An online version is also available.

It’s good because: This is extremely competitive and sits at the top of the market. It could be a popular choice for people looking to invest their tax-free allowances over the longer term.

 

RCI Bank has increased the rate on its easy-access account, which now pays 1.65%. Savers can invest between £100 and £1m. Additions and unlimited penalty-free withdrawals are permitted. This deal is for savers aged 18 and over and can be operated online or by phone.

It’s good because: This deal is now the market-leader and it tops the Moneyfacts.co.uk best buys. With the benefit of unlimited penalty-free withdrawals, this deal is a no-brainer for those looking for easy access saving.

 

Mortgages

Halifax has reduced the cost of its five-year fixed mortgage, which is now priced at 3.04% until November 2020. This deal is for first and second-time buyers who borrow up to £1m at 80% loan-to-value (LTV). There is a fee of £760, all of which can be added to the advance. There is the flexibility of being able to make overpayments of up to 10% a year and take payment holidays. Borrowers who hold Halifax current accounts will receive £150 cash rebates.

It’s good because: This 3.04% five-year fixed rate is reasonably priced and could be popular for those looking a high-street brand.

 

Coventry Building Society has launched a new variable-rate tracker for term, priced at 2.15%. This deal is for successful applicants who borrow at 85% LTV. There is a fee of £999, all of which can be added to the loan advance. A free valuation (worth up to £670) is available to all borrowers, while those remortgaging will also be offered free legal fees. Unlimited overpayments and payment holidays are allowed, and there is no early-redemption penalty.

It’s good because: This has the lowest rate in its sector, while the addition of a generous incentives package means it heads straight into the Moneyfacts best buys.

 

Loans

Hitachi Personal Finance has made a rate cut to the lower tier of its personal loan. A loan of £5,000 over two to five years is now a market-leading 4.4%. Customers must be 18 or over and can apply online or by telephone.

It’s good because: By strategically pricing its tiers, Hitachi remains one of the most competitive loan providers for its entire range of borrowing amounts.