Moneyfacts.co.uk – weekly product update 02/07/2007
Moneyfacts.co.uk team comments:
- Loyalty rewarded at Derbyshire BS
- Halifax reduces mortgage rates
- Loan rates continue to climb
Loyalty rewarded at Derbyshire BS
Rachel Thrussell, Head of savings at Moneyfacts.co.uk – the money search engine, comments:
“Today sees the launch of a new regular saver from Derbyshire BS. The account has standard regular saver T&Cs, requiring regular deposits of between £10 and £250 per month. The account has no expiry date, and allows four penalty free withdrawals per year.
“The interest rate ranges between 6.5% and 8%, and is determined by the number of years you have been a customer with Derbyshire BS. 6.5% is paid for customers of between one and two years, with the maximum 8% paid to customers of 10 years and over.
“It’s good to see loyalty being rewarded for a change, as far too often the best deals used to attract in new business are unavailable to existing customers. This is a great product for any existing Derbyshire customer; it’s simple and flexible with the offer of four free withdrawals per year. The top rate of 8% is market leading, with rates of 7%-7.5% dominating the Moneyfacts.co.uk best buys for no strings regular savings accounts.
“Offering a decent paying no stings regular saver may also encourage investors to save regularly, which must also be applauded.
“Let’s hope more providers adopt this strategy of looking after their existing customers, as this is one of the few examples in the market at present where loyalty does pay.
Halifax reduces mortgage rates
Julia Harris, Mortgage Expert at Moneyfacts.co.uk – the money search engine, comments:
“In almost of year of rising fees and rates, it’s been a long time since we have seen a reduction in fixed rate mortgages. With swap rates falling slightly over the last few weeks, it’s good news to see Halifax leading the way by making reductions to some of its fixed rate range.
“The three mortgage deals that have seen a rate cut are intermediary only deals. But a fall of up to 0.20% could see the average mortgage monthly payment fall by almost £16 a month.
Old Rate |
New rate |
Change |
6.09% to 30.11.09 |
5.89% to 30.11.09 |
- 0.20% |
6.19% to 30.11.09 |
6.09% to 30.11.09 |
- 0.10% |
6.29% to 30.11.12 |
6.14% to 30.11.12 |
- 0.15% |
“Even with the reduction in rates, these products are far from market leading. Sub six percent rates can still be found, with much lower fees too.
“But with Halifax historically leading the way in the mortgage market, we can but hope that this is a sign of things to come and that perhaps other lenders will pass on their cost reductions to the consumer as and when they can.”
Loan rates continue to climb
Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk – the money search engine, comments:
“This past year has seen a raft of rate increases and this has gradually been filtering through into the personal loan market. In just the last 14 days eighteen lenders have increased loan rates by as much as 4%.
“In most cases the increase has affected larger loans, typically over £5K
Provider |
Rates increased by up to: |
Alliance &Leicester |
Selected rates up 0.40% |
Barclaycard |
Selected rates up 0.40% |
Cumberland BS |
Selected rates up 3% |
Direct Line |
Selected rates up 0.30% |
Dudley BS |
Selected rates up 3% |
Eskimo Loans |
Selected rates up 1% |
Furness BS |
Selected rates up 3% |
Hanley Economic BS |
Selected rates up 3% |
Lombard Direct |
Selected rates up 0.20% |
Masterloan |
Selected rates up 0.40% |
Mint |
Selected rates up 0.50% |
NatWest |
Selected rates up 1% |
Northern Rock |
Selected rates up 0.50% |
Norwich Union |
Selected rates up 4% |
RAC Financial Services |
Selected rates up 4% |
Stroud & Swindon BS |
Selected rates up 3% |
Tesco Personal Finance |
Selected rates up 1% |
Vernon BS |
Selected rates up 3% |
“These large and continued rate rises reflect the way that rising bad debts and increased base rates are hitting the personal loan market. Whilst rates are still lower for larger loans, particularly in comparison to mortgage lenders SVRs, you need to shop wisely to ensure you are getting the best deal.
“Make sure you get the best deal for your circumstances. Remember, many rates quoted are typical, so you may be offered a higher rate. Opting for deferred repayments at the start of the loan may sound attractive, but remember its just extending the term of your loan and increasing your interest bill in the process. Most importantly, check out the price of any insurance your opt for, as far cheaper and more flexible insurance can be purchased from independent providers.”
Moneyfacts Group
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