The best mortgages, savings and credit cards

Mortgages

There is evidence that the mortgage market is easing with HSBC putting £1 billion into loans for first time buyers offering mortgages of up to 90% of the property’s value.  The only drawback is that to qualify borrowers will have to move their current account to HSBC which has a charge of £12.95 a month. 

In addition, mortgage brokers report that HSBC is very fussy about credit references and those who have black marks in their files will be unlikely to qualify.  But HSBC is offering two-year fixes at 4.99% to those with only a 10% deposit.  This may not be the cheapest rate on offer but historically it is still a low rate and the best 90% LTV available. 

Full details of the HSBC 90% LTV loans from www.hsbc.co.uk

Savings

Cater Allen is warning savers not to accept low rates for longer term fixed rate deposits pointing out that the average rate for 2 and 3 year fixed rate savings accounts is currently just 3.19%. Banks are not stupid and they know that interest rates will rise, probably early next year, so they are trying to tie up investments for two and three years or even longer at today’s low rates.

Just 10 of the 80 two-year fixed rate savings accounts available currently offer four per cent or higher on headline interest rates and only 7 of the 73 three-year fixed rate savings accounts available currently offer four per cent or higher on headline interest rates

For those who don’t mind locking themselves in for longer periods, Cater Allen has recently launched two competitive fixed rate savings bonds offering up to 4.11% depending on the level of investment made.  Minimum investment is £5,000.

Full details at www.caterallen.co.uk/collection  or by telephoning 0800 028 1200.

But the best offer looks like West Bromwich Building Society’s one year E-bond 21 paying 4.3% on sums of £5,000 or more.  The shorter term gives savers the opportunity to re-invest in a year’s time when hopefully interest rates will have risen.  One thing is certain, rates won’t have fallen during the investment period.  Full details at  www.moneyfacts.co.uk.

Bank Current Accounts

For those prepared to undergo the trauma of changing banks there are some interesting current account offers now available.