MortgagesAug 13 2015

Accord slashes upfront buy-to-let costs

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Accord slashes upfront buy-to-let costs

Fixed-rate Accord mortgages with a £195 product fee will now be available to landlords with loan-to-values at 60 per cent and 65 per cent.

All house purchase mortgages offer £500 cashback on completion, while those remortgaging will benefit from a free standard valuation and either free standard legal fees or £300 cashback on completion.

At 60 per cent LTV, Accord is currently offering a three-year fixed rate of 2.84 per cent and a five-year fixed rate of 3.44 per cent, on house purchase.

Landlords looking to remortgage at 60 per cent LTV can benefit from a 2.99 per cent rate, fixed for three years, or a 3.59 per cent five-year fix, while those with a 65 per cent LTV looking to buy a new property can fix for three years at 3.09 per cent or five years at 3.74 per cent.

Rates available to landlords looking to remortgage at the same LTV are a three-year fixed rate of 3.24 per cent and a five-year fixed rate of 3.89 per cent.

Chris Maggs, Accord’s buy-to-let commercial manager, said: “We know that the upfront costs associated with both house purchase and remortgage can be off-putting when brokers are trying to find the mortgage which best fits their clients, so these competitive, lower fee mortgages are designed to give different options for those who want to minimise initial costs.

“The longer-term fixes will give landlords the security of a guaranteed rate for the next three or five years, which we think will prove popular with brokers and customers.”

Accord’s cuts to buy-to-let products fees came as fellow building society Market Harborough reported a strong start to the year with mortgage lending up 38 per cent for the first half of 2015.

Mark Robinson, chief executive of Market Harborough BS, said “The society’s mortgage growth is a result of our focus as a niche lender and one totally committed to our intermediaries, to whom we provide bespoke and specialist market leading mortgages.”

emma.hughes@ft.com