Accord Buy To Let is launching a range of new tracker mortgages with no early repayment changes (ERCs).
These are designed to provide landlords with flexibility to exit their mortgage early without the usual fees, should their circumstances change over the next two years.
Available from tomorrow (12 August), the mortgages will track the Bank of England base rate for two-years, collared at current rates.
As with all Accord’s buy-to-let mortgages, at the end of the two-year term landlords will revert to a discounted rate of 3.79 per cent (1.75 per cent below Accord’s standard variable rate at the time) for a further three years.
During this period there are also no early repayment charges, enabling the customer to exit the mortgage at any time.
Available at 65 per cent loan-to-value is a 2.69 per cent two-year tracker, or at 75 per cent LTV there is a 2.90 per cent two-year tracker, both with a £300 fee.
Both options are available to landlords looking to remortgage or expand their portfolio and each comes with a free standard valuation and for remortgages standard legal fees are also covered.
Chris Maggs, Accord’s buy-to-let commercial manager, said there is a lot of uncertainty in the market due to the recent taxation changes impacting landlords, and the tighter underwriting controls lenders are adopting to ensure landlords are not over committed and can support their property portfolio.
“It’s imperative lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,” he stated.
“Our new trackers do not tie landlords into their mortgage, giving them breathing space to review their options on a regular basis; with the bonus of not being subject to early repayment charges.
“Landlords also have a further cushion of our discounted reversion rate once their mortgage term ends giving them an extended period of flexibility which we hope they will welcome, especially if the buy-to-let market is subject to further changes.”
Ying Tan, managing director at The Buy to Let Business, added: “It’s important to have market-leading products and competitive rates available to landlords to support them during this time of uncertainty.”
peter.walker@ft.com
