Check out this week’s best new financial deals
Savings
Post Office Money has launched an easy-access Isa paying 1.5% a year, including a bonus of 0.85% for 12 months. Savers can invest from £100. Additions and unlimited withdrawals are permitted, as are transfers-in from cash and stocks & shares Isas. This deal is for savers aged 16 and over and can be operated online only. Savers have the flexibility to split their investment across Post Office Money’s Isa range.
It’s good because: Savers who are looking to shelter their savings from tax might be excited by this. It is a highly competitive deal and sits at the top of its sector.
United Bank UK has increased the rate on its one-year Isa, paying 1.65% on its anniversary. The minimum investment is £2,000. Additions and early access to funds are not permitted, but transfers-in from cash and stocks & shares Isas are allowed. This deal is for savers aged 18 and over and can be operated in branch, by post and online.
It’s because: This heads straight into the best-buy charts. It is an ideal product for savers looking to maximise their Isa interest in the shorter term. However, with no early access to funds, savers must ensure they are happy with their initial investment.
Mortgages
Virgin Money has reduced its five-year fixed rate mortgage, which is now priced at 3.19% until May 2020. This deal is for customers who borrow up to £500,000 at 85% loan-to-value (LTV). There is a fee of £1,094, of which £995 can be added to the mortgage advance. An incentive package of a £300 rebate for house purchase customers and free valuation and free legal fees for those remortgaging is available. There is the flexibility of making overpayments of up to 10% of the outstanding balance and take payment holidays.
It’s good because: Not only will customers benefit from the lowest rate in its sector but borrowers will be able to enjoy a great incentives package, which will help minimise the upfront costs.
TSB has reviewed its two-year variable-rate mortgage, which is now priced at 1.84% until the end of March 2017. This deal is for house-purchase customers who borrow between £5,000 and £1m at 60% LTV. It comes with a fee of £265. There is the flexibility to make overpayments of up to 10% of the outstanding balance as well as take payment holidays.
It’s good because: Borrowers looking for a high-street lender might like this offering. It is highly competitive and sits comfortably near the top of the market. With a low fee, this could be a cost-effective choice.
Loans
Tesco Bank has reduced the rate on its unsecured personal loan. Customers who borrow between £7,500 and £15,000 over one to five years can now apply for a rate of 3.8% APR. Borrowers must be 18 or over and can apply over the phone or online.
It’s good because: This is a very attractive rate, and will prove popular for people looking to consolidate their debts.