A bank account offering customers £200 has been hailed as ‘excellent’ by a financial expert. Moneyfactscompare has unveiled its Pick of the Week, highlighting what it considers to be the finest financial products currently available.

This week’s selection includes savings accounts, mortgages and current accounts, each assessed and rated with detailed reasoning.

Moneyfactscompare Pick of the Week

Savings

Chip – Chip Easy Access Account

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “The latest update from Chip sees it increase the rate on its Chip Easy Access Account. The boost to 5.01% AER sees it take the market-leading position when compared to its peers.

“However, while this is an attractive headline rate, savers should take note of the six month 1.51% AER bonus, so it’s crucial they review their deal once this expires. The account has no minimum deposit and savers can make further additions at any time.

“While access is permitted, savers are limited to the amount of penalty-free withdrawals they can make. If they make four or more the rate will drop significantly to just 2.91% AER so savers may need to plan carefully. Overall, this account receives an Excellent Moneyfacts product rating.”

Mortgages

TSB – Five-year fixed rate mortgage, 85% loan-to-value

Caitlyn said: “This week TSB has reduced a large selection of its fixed rates by up to 0.25%. One deal for remortgage customers to see a slightly smaller cut is the five-year deal at 85% loan-to-value which is now priced at a competitive 4.89% until August 31, 2031.

“Borrowers may note that while this deal includes a £995 fee, this is offset by its generous incentive package, which includes a free valuation and either £300 cashback or free legal fees. Adding to its appeal, borrowers are also offered some flexibility with their monthly payments as overpayments and payment holidays are permitted, subject to conditions. On assessment, this deal earns an Excellent Moneyfacts product rating.”

Buy-to-let – HSBC – Two-year fixed rate mortgage, 60% loan-to-value

Caitlyn said: “HSBC has reduced a selection of its fixed rate deals for landlords by up to 0.12%. The two-year option at 60% loan-to-value for second-time buyers has seen a slightly smaller cut and is now priced at an attractive 4.86%. The drop strengthens its position as a Moneyfacts Best Buy and, in addition to being fee-free, landlords can also enjoy a free valuation incentive, which may make this deal a great option for those looking to save on upfront costs. Overall, the deal earns an Outstanding Moneyfacts Product Rating.”

Credit cards

Virgin Money – 36 Month Balance Transfer Credit Card Mastercard

Caitlyn said: “The latest update from Virgin Money sees it reduce the introductory balance transfer fee to 3.10% on its 36 Month Balance Transfer card. The deal is already one of the longest balance transfer terms available and the cut may make this an even more enticing option for borrowers looking to transfer existing balances interest-free.

“However, it’s important borrowers note this is an introductory rate for the first two months, after which the fee rises to 5%. Further adding to its appeal, borrowers needing to make a big purchase may be pleased to note that this card also offers 0% on purchases for the first three months, but the standard rate rises to 24.9% thereafter so it’s important that they can afford to make the repayments. On assessment, this card sits towards the top of the Moneyfacts Best Buy tables and earns an Outstanding product rating.”

Banking

Barclays Bank – Bank Account

Caitlyn said: “This week Barclays Bank has launched a new £200 switching offer on its Bank Account. Consumers must switch using the Current Account Switch Service (CASS) and meet other criteria to be eligible.

“While the Bank Account doesn’t offer any credit interest or reward, adding to its appeal the card offers a £15 interest-free buffer on arranged overdrafts. Separate to the offer, this may be a good option for consumers wanting to maximise the overall value of their bank account because they can earn cashback on operating with Barclays Cashback partners through Blue Rewards, but this comes at an extra cost. Overall, the account earns an Excellent Moneyfacts product rating.”

Additionally, the account includes an Apple TV+ subscription valued at £9.99 per month.

Barclays and NatWest have unveiled mortgage rate reductions from Friday as the market gathers momentum amid the May heatwave, with brokers declaring a “significant shift”. Barclays has slashed its rates across the board by up to 0.43% — with the standout being its 5.85% purchase three-year fixed rate 95% Loan to Value (LTV), with a fee of £899 and a maximum loan of £570,000, dropping to 5.42%.

NatWest, meanwhile, has trimmed its rates by up to 0.54% — with the headline figure being its two-year tracker rate remortgage at 80% LTV with a fee of £995 being reduced to 4.42%. Coventry Building Society (BS) has similarly announced cuts across its product range.

This follows Santander lowering its rates by up to 0.23% last week, while Gen H trimmed its mortgage rates by up to 0.3% earlier this week. Experts noted that the easing of tensions in the Iran war had provided a boost — though they cautioned that sentiment could shift rapidly should hostilities escalate once more.

Justin Moy, managing director of Chelmsford-based EHF Mortgages, noted that swap rates had fallen and this was now filtering through into mortgage rates.

He added: “Some significant cuts from a number of high street lenders, as swap rates improve and the likelihood of base rate increases in 2026 recedes. But it’s so important for borrowers to act ‘quickly’ just in case, as we have seen so many times this year, rates can increase with little notice.”

Jack Tutton, director of Fareham-based SJ Mortgages, said there was “growing optimism” among brokers.

He added: “This marks a significant shift in the market, with many lenders reducing some of their rates today. These widespread cuts are set to increase competition in the mortgage market as summer approaches, bringing welcome news for those planning to move in the coming months.

“Borrowing costs have fallen over the past month, leading to the reductions released today, and there is growing optimism that this trend will continue with further rate cuts expected in the near future.”

Dariusz Karpowicz, director of Doncaster-based Albion Financial Advice, said summer was a “buying season”.

He added: “Welcome news for once. Swaps are easing, base rate fears for 2026 are fading, and the high street has finally taken the hint. Barclays, NatWest and Coventry are all trimming rates, and the timing could not be better with summer and the buying season nearly here.

“A word of caution, though. Cheaper rates have a habit of vanishing as fast as they appear, so do not sit on your hands. If you are buying or coming to the end of a deal, get your numbers reviewed now and lock something in while the mood is good. Optimism is lovely, but a secured rate is better.”

Katy Eatenton, mortgage and protection specialist at St Albans-based Eatenton Finance, urged borrowers to secure rates without delay.

She added: “Great news to get what tends to be a quiet time or year ramped up and moving in a positive direction. The downward direction of rates should give comfort to those coming off super-low rates this summer. I still encourage those hoping to move or remortgage this year to lock a rate in early, just in case things change”

Samuel Mather-Holgate, MD and IFA at Swindon-based Mather and Murray Financial, said these rates could be a sign of things to come.

He added: “The mortgage market is schizophrenic currently, with lenders increasing and decreasing rates week by week and movements within the market daily. It is great to see rates coming down, especially across leading lenders and coordinated moves.

“This could be a sign of things to come, but with geopolitics indirectly driving mortgage rates anything could happen while Donald Trump is directing policy.”

A mortgage broker has revealed why climbing onto the property ladder could be far more achievable than many people believe.

Despite the prevailing mood of pessimism, the door to homeownership is “open wider than it has been in nearly two decades”, according to one industry expert. A great number of prospective buyers still labour under the assumption that mortgage lenders will only offer loans worth four-and-a-half times their salary.

However, mortgage broker Sarah Fox-Clinch argues that this belief is now well and truly outdated. In recent years, lenders have quietly grown considerably more flexible on both income multiples and deposit requirements, unlocking opportunities for borrowers who may previously have written off homeownership as beyond their means.

Sarah Fox-Clinch, director of Bristol-based mortgage broker Fox Davidson, said many buyers had little idea just how dramatically the mortgage market had shifted.

She said: “The four-and-a-half times income rule used to be the ceiling. It is now much closer to the floor. For a lot of buyers who still think getting a mortgage is impossible, the reality is that the door is open, they are just looking at the wrong door.”

One of the most significant recent developments came from NatWest, which increased its maximum loan-to-income ratio to 6.5 times earnings for joint applicants earning £150,000 or more. This means a couple with a combined income of £150,000 could potentially borrow as much as £975,000, compared to roughly £675,000 under the old four-and-a-half-times model that many borrowers still mistakenly believe to be in place.

And NatWest is hardly the only lender doing so. April Mortgages now provides up to seven times income for borrowers earning at least £50,000, on condition they secure a long-term fixed mortgage.

Teachers Building Society similarly offers seven times income for those working in education, while HSBC, Nationwide and Barclays have all raised lending multiples for certain customers.

Fox-Clinch said: “Lenders have become much more aggressive in how they assess affordability, particularly for higher earners and borrowers with stable incomes. The mortgage market today looks very different from what many buyers remember even a few years ago.”

Deposit requirements have also changed considerably. Lloyds, Halifax and Bank of Scotland recently introduced mortgage products enabling first-time buyers to purchase with deposits as low as £5,000 on properties valued up to £300,000.

Skipton Building Society has been providing its Track Record mortgage since 2023, permitting renters with a solid history of paying rent punctually to potentially borrow the full value of a property without any deposit whatsoever. Fox-Clinch believes numerous people who abandoned buying during the challenging mortgage market conditions of 2023 may now be astonished by what is on offer.

She said: “If someone walked away from a purchase two years ago because the numbers did not work, it is well worth revisiting things now. There are far more options available than many people realise.”

She also cautioned that increased borrowing thresholds and reduced deposits invariably carried heightened financial risk: “Just because somebody can borrow more does not always mean they should. Higher income multiples create larger debts and very small deposits leave borrowers with less protection if property prices fall.”

Fox-Clinch emphasised that affordability should still be considered prudently, especially given continuing uncertainty surrounding inflation and interest rates. However, despite those risks, she maintains the market has become substantially more accessible than public perception indicates.

She added: “The reality is the door to owning a home is open wider than it has been in nearly two decades.”