Pick of the week

The latest best deals

Savings

BM Savings has increased the rate on its one-year fixed-rate bond, which now pays 1.85% on its anniversary or 1.83% every month. Savers can invest as little as £1. No additions or early access to funds are permitted. This deal is for savers aged 16 and over and can be operated by post only.

It’s good because: Savers looking for a short-term home for their savings will be excited by this update. This deal heads straight to the top five in its sector.

 

Leeds Building Society has launched a five-year fixed-rate Isa paying 2.5% a year. The minimum investment is £100. Additions are permitted while the issue remains open and savers will be able to access up to 25% of the original investment without incurring a penalty. After that, a 365-day loss-of-interest penalty is charged. The deal is available for people aged 16 and over and can be operated in branch and by post.

It’s good because: This is highly competitive and sits near the top of the market. Due to its flexibility and penalty-free withdrawals, it is likely to be a popular choice for savers who have yet to invest this year’s tax-free allowance.

 

Mortgages

Coventry Building Society has reduced its variable rate for term, which is now priced at 1.89%. This deal is for all customers borrowing at 65% loan-to-value (LTV). There is a fee of £499, of which £300 can be added to the advance. An incentive package of a free valuation up to £670 and free legal fees for those remortgaging is available. There is the flexibility of being able to make overpayments as well as take payment holidays, and there it also no redemption penalty.

It’s good because: This variable rate tracker for term has been competitively priced and offers the lowest rate in its sector. The addition of a generous incentive package means this deal heads straight into the Best Buys. Borrowers looking for flexibility will be pleased at the lack of an early-redemption penalty, which means they may be able to pay off the loan quicker than originally planned.

 

Mansfield Building Society has launched a two-year discounted variable rate, priced at 4.05% (1.54% discount). This deal is for first and second-time buyers who borrow from £25,000 at 95% LTV. There is a fee of £199 and a free valuation. There is the flexibility to make overpayments of up to 10% of the mortgage advance.

It’s good because: Borrowers with a small deposit of 5% will be delighted by this. It has the lowest rate in its sector. The extra bonus of a low fee and a free valuation mean this deal is bound to be a popular choice for those looking for low set-up costs.

 

Loans

M&S Bank has reduced its personal loan rates, and customers can now borrow between £7,500 and £15,000 at 3.9% APR for between one and seven years. Customers must be 18 or over to apply.

It’s good because: This tops the Best Buys and is a great deal for customers looking to consolidate their debts.