LenderRatePeriodFeesMaxLTVRedemption Penalties
Discount Rate
Melton Mowbray BS1 1.50% 3 years nil 65% 1st 3 yrs: 2% Outstanding Balance
Variable Rates
Coventry BS2 1.79% Term £999 75% None
Fixed Rates
Accord Mortgages3 1.69% 31.08.2017 £475 75% To 31/8/17: 2/1% Sum Repaid
Buy-To-Let
Principality BS4 2.30% 31.05.2017 £994 60% To 31/5/17: 4% Mortgage Advance
Platform4 2.39% 2 years £999 60% 1st 2 yrs: 2/1% Sum Repaid

Main Points

  1. The mortgage rates are changing all the time, but we have restricted the details to more established providers in the market.

Introduction

The overall process of selecting a mortgage are explained in Types of Mortgage Repayment and Types of Mortgage Interest.

This note sets out the most competitive rates, presently available on the market. Many of the more attractive rates may disappear in a matter of days, so these terms should be only used as a guide to help you identify the type, before broking the market.

Notes:

  • LTV is the lending to value, i.e. the percentage quoted is the maximum loan on the value of the property.
  • 1Procuration fees: 0.35% of Mortgage Advance, (Min £150, Max £1K)
  • 2Procuration fees: Refer To Lender
  • 3Procuration fees: Min 0.37% Max 0.40% of Mortgage Advance
  • 4Procuration fees: 0.40% of Mortgage Advance
  • 5Procuration fees: 0.48% of Mortgage Advance, (Max £1680)
  • 6 LTV may differ for re-mortgages.
  • 7 Source: Moneyfacts 5th May 2015


WARNING - If you are a GROUP client with investment restrictions (such as PwC), please make sure that you check that the following comply with any independence requirements.


Risk Warning: The past is not necessarily a guide to future performance. The value of your investment and the income from it can fall as well as rise and is not guaranteed. You may not get back the full amount invested.

Our views are based upon our understanding of current legislation. Levels and bases of, and reliefs from, taxation are subject to change and their value to you will depend upon your personal circumstances. You should not act on any of the information without seeking professional advice.

clarity is authorised and regulated by the Financial Services Authority. The Financial Services Authority does not regulate all types of Pensions, Mortgages of Taxation Advice.

Your home may be repossessed if you do not keep up repayments on your mortgage. Most Buy-To-Let mortgages are not regulated by the Financial Services Authority.

CompanyNoticeAnnual Equivalent RateContact Number or Webpage
Barclays 1 Instant 0.80% 0845 300 6156
Al Rayan Bank 2 120 Day 1.81% 0845 6060 786
Yorkshire BS 3 Instant 1.20% 0845 1200 100
ICICI Bank 4 No Notice 1.00% 0344 412 4444

Notes:

  • 1 Rate includes 0.21% bonus for 12 months, AER 0.31%, 0.46%, 0.60%, 0.70% <£100k
  • 2 Sharia,a compliant account. Indicative profit rate.
  • 3 3 withdrawal days per anniversy year (closure counts as a withdrawal).
  • 4 Not available to existing HomeVantage Current Account holders.
  • The interest is payable annually, unless otherwise stated.
  • Tax is payable on the gross interest at an individual's highest marginal rate of tax.
  • These rates are not necessarily the most competitive amongst all banks and building societies, but do represent the major institutions.
  • Source: Moneyfacts.co.uk 5th May 2015

Mini Cash ISAs
CompanyTermRateMinimum Deposit Interest Paid Contact Number or Internet

Notes:

  • These rates are not necessarily the most competitive amongst all banks and building societies, but do represent the major institutions.
  • Source: Moneyfacts.co.uk 1st January 1970


Main Points

  • Cash deposits are the most uninteresting part of personal finance, but at the same time can more than offset the benefits of ISA and pension investments.
  • Internet and telephone based deposit takers should provide the highest rate.
  • For those of you with mortgages, the best possible form of deposit should be the repayment of your mortgage.
  • The best rate does not mean the highest rate.

Introduction

The management of cash is one of the least exciting aspects of personal finance. However, the potential loss in interest payments can be considerable if the money is in the wrong place at the wrong time. Most bank accounts pay a nominal rate of interest, so ideally the maximum sum should be held in specialist deposit accounts at all times.

The most competitive accounts are those run solely through the Internet or over the telephone. The low overheads are passed onto you with consistently attractive rates of interest. A fine idea in theory, but in practice not always true.

Some of the best rates of interest can be secured from the reduction of your mortgage. Therefore, the mortgage should be part of the overall management of your cash. Indeed very rarely will the rates of interest secured from a cash deposit exceed the cost of a mortgage.


Selection Criteria

Please note that we have chosen some accounts that have an initial bonus attaching to the rate, which is most attractive for a relatively short term investment. If you are considering holding money in cash over the longer term then you should consider a bonus-free rate.


WARNING - If you are a GROUP client with investment restrictions (such as PwC), please make sure that you check that the following comply with any independence requirements.

The following tables set out the current rates for various types of annuity, based upon an investment of £10,000. An annuity is an income paid for life. There are a number of options available when choosing the type of annuity to buy – for example, whether the income stays level or increases, and whether it is paid for the life just of the purchaser or might also cover the life of their spouse.


Pension Annuity ("Compulsory Purchase Annuity") Rates

A Compulsory Purchase Annuity is the type of annuity purchased using a money-purchase pension fund. Further details can be found in our Research Note on Traditional Lifetime Annuities .

Click on any of the cells below to view historic data for the selected age and annuity type.

Type of Annuity
No Guarantees
Single Life Joint Life, with 2/3rds widows
60 65 75 M60/F55 M65/F60 M75/F70
Level
441
506
743
380
430
572
With Profits
204
259
475
-
-
-
RPI Linked
236
305
548
184
225
372
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Non-Pension Annuity ("Purchase Life Annuity") Rates

A Purchased Life Annuity is the type of annuity that anybody can purchase using their own money. It effectively turns a capital lump sum into an income stream for life. Further details can be found in our Research Note on Purchased Life Annuities .

Type of Annuity
No Guarantees
Single Life Joint Life, with 2/3rds widows
65 70 75 M65/F60 M70/F65 M75/F70
Level
527
598
703
468
520
581
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Notes:

  1. The CPA rates show income paid monthly in advance, and the PLA rates show income paid monthly in arrears without proportion
  2. The minimum purchase price may be at least £10,000 or more, in order to achieve the best rate
  3. The annuity rates are based on competitive rates from Moneyfacts website
  4. Rates are variable and subject to change, and should only be used as a guide
  5. Source: Moneyfacts.co.uk 10th April 2015


Glossary

Annuitant - the person/s on whose life the policy is arranged.

Compulsory Purchase Annuity - an annuity which is bought from money-purchase pension funds.

Escalating Annuity - the income increases in line with a fixed rate per annum compound.

Frequency of Payments - the annuity payments can be made monthly, quarterly, semi-annually or annually. The income can be paid either in advance or in arrears.

Guaranteed Payment Period - the annuity guarantees to pay the income for a period of time, irrespective of whether the annuitant has died or not. The guaranteed payment periods are up to 10 years. If the individual dies most insurance companies try to pay a lump sum to reduce the administration burden for the executors of the estate.

RPI Linked - the annuity will increase in line with the retail price index throughout the term of the annuitant. Some of the RPI linked annuities will rise and fall with inflation, while most will only rise. (i.e. when inflation falls, the insurance company will maintain the income payments).

Level Annuity - the annuity remains level throughout the life/lives of the annuitants. The main disadvantage of this form of annuity is inflation, which can erode the value of the income, as witnessed in the 1970's.

Overlapping - when the first life dies, the full annuity is paid until the guaranteed payment period finishes. If there is no overlapping the annuity will fall to the lower level, which is on the second life.

Proportion - proportion allows for the partial payment of the income, if the annuitant dies half way through the period. For example if the annuity is paid annually in arrears, and the annuitant dies half way through the period, the deceased estate would receive half the income payment.

Purchased Life Annuity - an annuity which can be bought by anyone from their own funds, i.e. not bought from pension-source funds.

Widows/Widower's Benefit - the annuity will continue after the death of the first life, until the death of the second life. The benefits could be escalating throughout. There could be a reduction after the death of the first life, of between 0% and 100%. The most common reductions are 1/3rd, 50% and 2/3rds. The figures shown above assume a reduction of 1/3rd, i.e. a 2/3rds payment to the surviving spouse.


Risk Warning: The past is not necessarily a guide to future performance. The value of your investment and the income from it can fall as well as rise and is not guaranteed. You may not get back the full amount invested.

Our views are based upon our understanding of current legislation. Levels and bases of, and reliefs from, taxation are subject to change and their value to you will depend upon your personal circumstances. You should not act on any of the information without seeking professional advice.

clarity is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate all types of Pensions, Mortgages of Taxation Advice.