Welcome to our first Market Watch column – your at a glance guide to what the major players in the world of finance have been up to over the last seven days. We’ve got all the latest product news, so, whether it’s a mortgage, credit card or savings account you’re after, you can make us your first port of call.
Mortgages
The big news in the mortgage market this week was, of course, the announcement by Tesco that it will be offering mortgages. Yes, the supermarket bank has finally made the move into home loans.
The Tesco Bank mortgage product range includes two, three and five-year fixed rate mortgages, and a two-year base rate tracker. Rates start at 3.19% (two year fixed, with a maximum LTV of 70%) and the maximum LTV on offer is 80%. There is a flat booking fee of £195 on all products with product fees ranging from £0 or £800. Early Repayment Charges apply during the initial rate period.
As a nice little bonus, Tesco Clubcard holders will be rewarded with Clubcard points as they repay their mortgage, and will collect one point for every £4 on their monthly mortgage repayments.
Meanwhile, Coventry Building Society launched a new range of mortgages for first time buyers including a five year fixed rate at 5.39%, 90% LTV, £199 booking fee and £300 arrangement fee.
And loyalty pays at the Coventry as customers who have themselves (or whose grandparent, parent or guardian has) held a Coventry savings, Coventry current account or, in the case of grandparent/parent or guardian, a Coventry mortgage, with it for the last three years will have access to the ‘Members’ range. This includes a 5.19% five-year fixed, 90% LTV, £199 booking fee, no arrangement fee and £500 IKEA Gift card (issued on completion).
Santander also hit the headlines after it reduced the rates on over 20 mortgage products in its range by up to 0.5%. The reductions are on products across the LTV spectrum from 60% to 90% LTV, including a 90% LTV five-year fixed reduced by 0.5% to 5.49% with upfront £99 fee.
This product includes Santander’s Homebuyer Solution (free standard mortgage valuation and £250 cashback on completion).
Cards
There wasn’t much excitement on the cards front although Barclaycard did give all you rate tarts out there the chance to transfer your balance to one of the Barclaycard range and receive 50% of their balance fee back. The offer has been around since the 9th July and was supposed to expire on 5th August, but the lender has extended it until the 13th – so today is your last chance to make the most of the deal!
Under the balance transfer fee offer, successful new applicants for Barclaycard’s 22 months 0% interest balance transfer product, will save an additional £40.60 if they transfer £2,800, which is the average balance moved onto new cards.
Savings
And in the savings world, Nationwide announced it was increasing the rates on a selection of its fixed rate bonds and e-bonds by up to 0.20%.
The new rates for annual interest will be between 2.01% and 2.26% AER on the six-month Fixed Rate Bond and six-month e-Bond and between 2.45% and 2.70% AER on the one-year Fixed Rate Bond, one-year e-Bond and one-year SMART Fixed Rate Bond.
We’ll be back next week with another roundup!
