Mortgages  

Accord Mortgages cuts rates

Accord Mortgages has announced cuts to its five-year residential mortgages of up to 0.2 of a percentage point, with selected products offering £250 cashback on completion and free standard valuation.

The intermediary-only lender, which is part of Yorkshire Building Society Group, has reduced its five-year and two-year fixed-rate mortgages by 0.1 per cent to 2.69 and 2.79 per cent at 65 per cent LTV respectively.

At 75 per cent LTV, customers are being offered a 2.79 per cent five-year fixed-rate mortgage with an £845 product fee and a 2.89 per cent fixed-rate loan over the same period with a product fee of £345.

For five-year fixed rate mortgages at 80 per cent LTV, rates have been lowered by 0.2 of a percentage point to 2.94 per cent with an £845 product fee, and 3.14 per cent with a £345 product fee, free standard valuation and £250 cashback on completion.

The decrease also applies to the two-year fixed-rate at 80 per cent to 3.04 per cent with an £845 product fee, free standard valuation and £250 cashback on completion.

Provider view

David Robinson, national intermediary sales manager at Accord Mortgages, said: “We think these new mortgages will appeal particularly to those customers who are looking for a competitive rate with the security of knowing what the exact repayments will be for the next five years. The rates and incentives are complemented by the high standard of customer service you would expect from Accord.

“We believe these changes provide borrowers with a wide range of competitive options and will prove extremely popular with brokers.”

Adviser view

David Hollingworth, associate director at Bath-based London & Country Mortgages, said: “More and more lenders are trimming their fixed-rate mortgages, so it makes sense for Accord Mortgages to re-price their offerings to keep up with the market.

“The 2.94 per cent five-year fixed product at 80 per cent LTV is very competitive, and right up there with Skipton Building Society which offers the same rate for a similar fee. However, at lower LTV, we are seeing lenders pushing rates to below 2.5 per cent.”

Charges

£345 for two-year mortgage fixed at 2.79 per cent and £845 for five-year fixed at 2.69 per cent at 65 per cent LTV. All products incur a charge of either £345 or £845.

Verdict

A flurry of lenders kicked off the new year by announcing cuts to their ranges of fixed-rate mortgages. It has become increasingly important for providers to keep a keen eye for activity in the market to ensure that they do not lose customers to their fiercest rivals because of their out-of-date offerings. With interest rates predicted to rise in the latter part of the year or possibly early in 2016, competitive five-year fixed rate mortgages as well as longer-term offerings may prove to be the product of choice for those looking get on the property ladder.