Accord Buy-to-Let has reduced rates across its fixed-rate mortgages following the recent base rate cut, and brought out new remortgage options.
The intermediary arm of the Yorkshire Building Society has cut rates by 0.3 per cent, five basis points more than the base rate reduction of 0.25 per cent. The lender has also launched new remortgage options on three- and five-year fixes.
The two-year fixed rate at 60 per cent LTV is now priced at 1.94 per cent, and comes with an £800 fee, with free valuation and legal fees.
The three-year fix at up to 65 per cent LTV is available at 2.64 per cent, also with an £800 fee, but comes with a £500 cashback on completions for landlords wishing to extend their portfolios. This mortgage also comes with free valuations and legals fees.
A five-year remortgage deal at 60 per cent LTV is available at 3.09 per cent, and comes with an £800 fee and choice of free standard valuation and £300 cashback on completion, or free standard valuation and legal fees.
Accord is not the only lender to reduce its rates following the recent base rate cut; Leeds Building Society has reduced its SVR by 0.25 of a percentage point. This makes the new rate 5.44 per cent, down from 5.69 per cent.
Skipton also cut its SVR, from 4.95 per cent to 4.7 per cent, while its mortgage variable rate went from 4.99 per cent to 4.74 per cent.
Provider view
Chris Maggs, Accord’s Buy-to-Let commercial manager, said: “We always try to offer brokers and landlords a range of options and good, long-term value for money.
“Landlords are looking for security during this time of uncertainty, and we have reduced rates across our entire fixed range to ensure we are offering competitive options to suit all circumstances.
“We also hope the added incentives, such as cashback on completion and free standard valuations, will prove popular with brokers and landlords looking to get the most from a mortgage.”
Adviser view
Ian Gwinnell, director of Stafford-based All Counties Financial, said: “The Accord deal is very good value. It’s probably as competitive as what I’m hearing at the moment.
“Now that the bank of England has slashed base rates by another quarter of a per cent, it’s a waiting period to see what lenders are going to offer as far as rates go.
“Since base rates were slashed to half a per cent for the past few years, that’s punished a lot of lenders who were left out of pocket.”
Mr Maggs added: “Some lenders are saying they would put a bottom on what the rate would be – I don’t expect all lenders to move and change rates. Accord has been able to secure finance at a lower rate and pass it on to its customers.”
Charges
The two-, three- and five-year fixed rates come with an £800 fee.
Verdict
The base rate cut was big news two weeks ago as it was the first time bank base rate has been changed in seven years. But it is not necessarily going to be passed on to borrowers; not all lenders can afford to pass on a base rate cut as some of their cheaper deals have been financed by more expensive deals.
