An ‘outstanding’ deal from Santander giving customers £250 cashback has been marked out by a financial expert among her picks of the week.

The Moneyfactscompare.co.uk Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market. They include mortgages and savings this week. The first deal highlighted is the Atom Bank five-year fixed saver.

Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “Climbing its way to the top Best Buy spot, this week Atom Bank has increased the rate on its five-year fixed saver to a market-leading 5%. The deal can be opened with as little as £50, however, further additions can be made for seven days from the account opening which may boost its appeal for some.

“As is the case with many fixed bonds, earlier access is not permitted meaning savers should be comfortable locking away their cash for the full term before committing. Savers looking to guarantee their returns will be pleased to see the return of 5% fixed bonds. On assessment, this account receives an Excellent Moneyfacts product rating.”

Also marked out was the Oxbury Bank Easy Access Summer Account.

Caitlyn said: “Oxbury Bank has launched a new Easy Access Summer Account this week, taking a competitive position as a Best Buy. The account pays an inflation-busting 4.22% AER, and as interest is paid monthly this may appeal to savers looking to give a boost to their income. While savers must deposit at least £1,000, they can benefit from unlimited penalty-free withdrawals as well as making further additions at any time, however, all transactions must be made via a nominated account.

“This account suits anyone searching for maximum flexibility. Overall, the deal earns an Excellent Moneyfacts product rating and is a Moneyfacts Best Buy.”

Turning to mortgages, the Santander 10-year fixed rate mortgage with a 90% loan-to-value scored highly.

Caitlyn said: “Among the many lenders to increase fixed rates this week, Santander has made rises of up to 0.19% across its range. One deal to see a slightly smaller rise is the 10-year fixed rate option at 90% loan-to-value, which is now priced at 5.74% until November 2, 2036.

“Despite the rise, this deal remains an Outstanding option for borrowers, particularly to those with smaller deposits. As part of the package, borrowers can benefit from an attractive incentive package, which includes a free valuation and £250 cashback, offsetting its £999 fee.

“The longer term may give borrowers much-needed peace of mind and may be an ideal option for those prioritising stability. On assessment this deal earns an Outstanding Moneyfacts product rating and a position as a Moneyfacts Best Buy.”

In the buy-to-let market, the HSBC two-year fixed rate mortgage with a 75% loan-to-value was mentioned.

Caitlyn said: “HSBC has increased a selection of its fixed deals by up to 0.14% this week. The two-year deal at 75% loan-to-value has seen a slightly lower rise of 0.11% to 4.70%. Despite the increase in rate, this deal continues to take a prominent position as a Best Buy and is an enticing option for landlords thanks to its free valuation incentive, which offsets the £1,999 fee. Overall, the deal earns an Excellent Moneyfacts Product Rating.”

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.”

A bank account switching deal offering customers £200 has been praised as ‘outstanding’ by leading financial product price comparison service Moneyfactscompare.co.uk, which highlighted the offer in its regular Pick of the Week rundown.

The NatWest Reward Current Account was singled out as one of the most attractive incentives currently on the market. Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: “NatWest has added a new switching offer to its Reward and Select Accounts, offering customers an attractive £200 when they switch using the Current Account Switch Service (CASS). To be eligible, consumers must ensure they deposit at least £1,250 and log in to the mobile banking app within 60 days of switching.

“While the Reward Account charges a £2 monthly fee, this is offset by the opportunity to earn up to £5 in rewards per month. To avoid overpaying on their current account, consumers should ensure they make use of all the benefits. Overall, the account earns an Outstanding product rating.”

Moneyfactscompare also turned its attention to savers, recommending the Chip Smart Cash ISA as a top choice.

Caitlyn said: “This week, Chip has increased and added a boosted rate on its Chip Smart Cash ISA. The rise sees the account take the number one spot when compared to its peers and now pays an attractive 4.32% AER, however, this includes a 0.57% AER bonus for the first 12 months, so it’s important savers review once it expires.

“Adding to its appeal, Chip’s Smart Cash ISA has an underlying gross rate guaranteed to be equal to Bank Base Rate. While savers can invest as little as £1 and add to the account at any time, if they wish to close the account or transfer out before the first anniversary, they will not receive their interest payment, which should be considered.

“Investors have the choice between holding a fee-free subscription or paying a £4.99 fee per 28-days for a ChipX subscription which gives them wider or exclusive access to some features. The deal secures an Excellent Moneyfacts product rating.”

‘Outstanding’ mortgage deals this week

In the mortgage sector, the HSBC five-year fixed rate mortgage at 60% loan-to-value proved particularly noteworthy this week.

Caitlyn said: “The latest update from HSBC sees it reduce selected fixed rates by up to 0.13%. The five-year deal at 60% loan-to-value has seen a marginally smaller 0.12% cut, which solidifies its position as a ‘Best Buy’. Homemovers can now get the deal at a competitive 4.49% until 31 July 2031 and, further adding to its appeal, they can receive a free valuation incentive which offsets its £999 product fee. On assessment, this deal earns an Outstanding Moneyfacts product rating.”

Turning to the buy-to-let market, HSBC once again drew praise, on this occasion for its two-year fixed rate mortgage at 60% loan-to-value.

Caitlyn said: “Alongside reducing variable tracker rates, HSBC has also reduced selected fixed rates for landlords by up to 0.09%. The two-year option at 60% LTV for second-time buyers has seen a smaller cut and is now priced at 4.94%. Landlords looking to minimise upfront costs may be pleased to note the no payable fee and free valuation incentive.

“Overpayments are also permitted by up to a maximum 20%, which may be a bonus for some. The reduction strengthens its position as a Moneyfacts Best Buy and earns an Outstanding Moneyfacts Product Rating.”

All deals are subject to terms and conditions and should be fully examined for individual suitability before committing.