Moneyfacts.co.uk - weekly personal finance update 09/05/2007
Moneyfacts.co.uk team comments on:
- Barclays ISA withdrawn
- HSBC bucks the LTV trend
- New HSBC 0% credit card offers
Rachel Thrussell, Head of savings at moneyfacts.co.uk – the money search engine, comments:
Savings
Best ISA rates vanishing fast
“With Alliance & Leicester’s top rate ISA deal already withdrawn, Abbey is left headlining at 8.10% with its Super ISA, but this comes with the requirement to equally fund a Guaranteed Growth Plan and is a limited rate offer.
“If you were looking for a no strings ISA, the Barclays Tax Beater ISA could not be beaten this year, paying 6.31%. But with this due to vanish from the shelves on Friday, so you’d better act quickly to get this great rate.
“The only slight downsides of the Barclays deal are that the rates does include a 1% bonus for the first 12 months, and it is only available via the branch or phone. So for a completely no frills account with Internet access, Egg offer the next best rate at 6.05%.
“When you consider the best savings accounts pay in the region of 5.70% gross, that’s less than 4.60% net, a tax free rate of 6% is a fantastic deal.”
Julia Harris, Mortgage Analyst at Moneyfacts.co.uk – the money search engine, comments:
Mortgages
HSBC bucks the trend
“As house prices continue to spiral, and home ownership becomes out of reach for many, lenders creativity in designing products to assist with that first step on the housing ladder must be applauded.
However, our incomes can only be stretched so far before they reach breaking point. And with rising rates, bad debts, and housing prices, how long can this continue?
“HSBC has become of the first large lender to buck the trend of rising LTVs. In its latest product changes it announced that its standard LTVs would fall from 95% to 90%, and that graduates would now be advanced a maximum of 95%, compared to 100% previously.
“So is this a sign of things to come? Will other lenders soon be reviewing in their lending criteria, as they adopt a more cautious approach?
Michelle Slade, Personal Finance Analyst at Moneyfacts.co.uk – the money search engine, comments:
Credit Cards
New 0% deals from HSBC
“New cards from HSBC combine market leading 0% purchase or balance transfer deals, with either a lifetime balance transfer deal or a limited 3-month 0% purchase deal. Offering 12 months 0% on purchases for phone or branch applications leads the market, followed closely by 10-month deals from Sky and Sainsbury’s Bank. While the online card offering 12 months 0% on balance transfers enters at number three in the Moneyfacts.co.uk best buy charts.
“It has been some time since we have seen the moneyfacts.co.uk best buy charts dominated by 0% balance transfer deals of 12 months or longer – the competition for this market has really intensified since the start of 2007.
“However this level of competition has not been reflected for introductory rate purchase deals, while there are still some great deals available, including the new 12 month offer from HSBC, the market is far less buoyant than for balance transfers.
“When choosing 0% credit card ensure you get one that matches your needs, to make the most of your deal don’t mix your spending, keep separate cards for your purchases and balance transfers, and if you travel abroad regularly, perhaps look at a third card that gives you a good deal for foreign transactions”
NOTES TO EDITORS:
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