MortgagesApr 20 2016

Accord releases sub-2% two-year fixed rate

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Accord releases sub-2% two-year fixed rate

Accord Mortgages has today launched new incentivised mortgage options for borrowers with a 35 per cent deposit.

Yorkshire Building Society Group’s intermediary-only lender has developed a two-year fixed rate mortgage at 1.99 per cent for 65 per cent loan-to-value, which has no application or product fees.

However, a £90 mortgage fee payable on redemption of the loan does apply.

Borrowers benefit from free standard valuation and £250 cashback on completion, whilst those remortgaging will receive free standard valuation and legal fees.

David Robinson, national intermediary sales manager at Accord, said the deal helps borrowers minimise the costs of buying a home or remortgaging. “We hope that they will prove very popular with brokers and borrowers,” he added.

Daniel Bailey, mortgage adviser at Derbyshire-based Middleton Finance, commented that the market is very competitive at the moment and many lenders are offering incentitives to borrowers.

“When taking out a mortgage it is important to take into account fees attached to any deal. It maybe worth considering a slightly higher rate that have no fees attached to the deal.

“Up front costs when buying a house can be an issue for borrowers, so it is good news that Accord are offering a free valuation and £250 cash back.”

Accord has been on something of a spree of new deals and rate reductions in recent months, starting in February with a new range of five-year fixed rate residential loans for borrowers with a 25 per cent deposit and cuts to remortgage rates for landlords by up to 0.15 per cent.

In March, the lender discounted several two-year fixed rate remortgage products at up to 75 per cent LTV, followed by reductions to residential rates by up to 0.13 per cent across its five-year fixed rate 90 per cent LTV range.

Now in April, the firm has already reduced the product fee on selected mortgages by £650 to help landlords looking to remortgage or extend their portfolio.

peter.walker@ft.com