Moneyfacts.co.uk – weekly product update 24/10/2007
- A five star product from the Co-operative Bank
- Barclays bucks the trend
- Graduate loans on the increase
A five star product from the Co-operative Bank
Today sees the launch of a new two year discounted tracker rate mortgage from the Co-operative Bank, taking the market by storm and shooting straight to the top position in the Moneyfacts.co.uk best buy charts. With a rate of 5.29% it is 0.34% lower than our existing best buy from Giraffe at 5.63%. A flat fee of £999 and maximum LTV of 95% should appeal to a wide audience. Those borrowing up to 95% loan to value, mostly first-time buyers, will also appreciate that no higher lending fee is charged.
Julia Harris, Mortgage Expert at Moneyfacts.co.uk commented: This is an extremely competitive product. In a time when we are predicting an increase in demand for variable rates, with base rate almost certain to remain on hold or most likely fall in the forthcoming months, I suspect this product will be a popular choice. Offering a very low rate compared with its peers, but still maintaining a reasonable fee, this deal really comes up trumps.
“A thumbs up from Moneyfacts.co.uk; this is truly a five star product in what is an incredibly competitive market.”
Barclays bucks the trend
While the rest of the savings market seems to be booming with increasing rates and new best buy products being launched almost daily, this week Barclays Bank became the first provider to announce a reduction in its savings range during this period of base rate stability.
Lisa Taylor, analyst at Moneyfacts.co.uk commented: “By bucking the current trend and reducing rates on its adult savings range, Barclays has become far from competitive. The instant access and no notice accounts fall well short of the top rate of 6.50% available elsewhere. With the e-Savings only paying up to 4.87% (4.96% AER), it will struggle to compete with the 6.40% (6.41% AER) available from competitors. Even the ISA falls well short of the market leading 6.21% transfer in product.
“It’s disappointing to see that such a larger provider is reducing its rates even further. Savers should take stock of their investments and check they are receiving the best rates. With already uncompetitive accounts falling, while the top end of the market booms, it really does make a difference whether you are with the best or worst provider.
Graduate loans on the increase
Graduates are facing a hard time with their interest bills at the moment. With student loan rates linked to inflation, this last year has seen rates jump up. Should they be looking for additional borrowing by way of a graduate loan, it’s not good news to see Lloyds TSB and NatWest increase their rates this week.
Samantha Owens, Head of Personal Finance at Moneyfacts.co.uk commented: “In line with the rest of the mortgage market rates, graduate loan rates are staring to increase. Graduates should not assume that these specialist deals will offer them the best rate. With significantly lower rates to be found in the market it’s worth shopping around.”
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