HSBC's two-year fixed rate mortgage, which includes £250 cashback, has been highlighted as an 'outstanding' deal by financial experts at Moneyfactscompare.co.uk. The offer was selected as part of the company's Pick of the Week, which showcases the best new products or rate changes in the consumer finance sector.
The weekly roundup covers savings, mortgages and current accounts, among other offers. This week, the team has chosen two savings accounts and two mortgage products, with one of its specialists providing analysis.
Expert selects top savings accounts
Turning first to savings, the Chetwood Bank 3-Year Fixed Rate Savings Account was singled out. Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: "Chetwood Bank has increased the rates on a selection of its Fixed Rate Savings Accounts, including the three-year option. The account now pays a market-leading 5.23% and may be an ideal option for savers willing to lock away their cash for the medium-term for the benefit of guaranteed returns."
Savers need to invest at least £1,000, with further additions allowed within 14 days of opening. There is no maximum investment, which could appeal to those with larger balances. However, withdrawals are not permitted during the fixed term, so savers should be comfortable with losing access and may want a separate flexible pot for emergencies. The account receives an Excellent Moneyfacts product rating.
The Close Brothers Savings – 95 Day Notice Account (Issue 16) was also highlighted. Caitlyn said: "This week Close Brothers Savings launched a new 95 day Notice Account, which takes a prominent position as a Moneyfacts Best Buy. The account pays an appealing 4.35% on balances starting from £10,000."
Notice accounts sit between easy access accounts and fixed bonds, and can suit savers who know when they'll need their money. The account allows unlimited penalty-free withdrawals via a nominated current account, but savers must give 95 days' notice for any withdrawal. It earns an Excellent Moneyfacts product rating.
Mortgage deals include HSBC cashback
Moving to mortgages, the NatWest two-year variable tracker rate mortgage at 60% loan-to-value was selected. Caitlyn said: "In its latest residential mortgage update, NatWest has reduced selected variable tracker and fixed rate offerings. One deal to see a small cut is the two-year tracker deal at 60% loan-to-value which is now priced at a competitive 4.08%."
Tracker rates can be attractive for borrowers looking to save on costs, as they offer lower initial rates than fixed deals. However, changes to the base rate can be passed on to monthly payments immediately, so budgets should be stress tested for potential rises. The deal has a £995 product fee, offset by a free valuation, and takes the market-leading spot in the Best Buys, earning an Outstanding Moneyfacts product rating.
In addition, an HSBC deal offering £250 cashback was also deemed "outstanding". The team highlighted the bank's two-year fixed rate mortgage at 85% loan-to-value. Caitlyn said: "This week HSBC has reduced most of its fixed rate mortgage range, with reductions of up to 0.19%. While the two-year offering for homemovers has seen a smaller cut, it's enough to enhance the deal's appeal and solidify its place as a Best Buy."
The deal is now priced at 5.39% and offers predictable monthly repayments for two years. There are no upfront fees, and the incentive package includes a free valuation and £250 cashback. Overall, the deal earns an Outstanding Moneyfacts product rating.
