Mortgages  

Accord BTL discounts range of two-year remortgage fixes

Accord But to Let has discounted a number of its two-year fixed rate remortgage products at up to 75 per cent loan-to-value (LTV).

Highlights of the range include a mortgage fixed over a 24-month period available at 2.34 per cent for landlords with a 25 per cent deposit.

The option, which includes standard valuation and legal fees is priced at 2.49 per cent. The same rate applies to the alternative product that offers £300 cashback as well as standard valuation. A £2,495 product fee is applicable to the three deals.

Article continues after advert

Two-year fixes at 75 per cent with a £800 product fee are priced at 2.64 per cent, or 2.89 per cent with free standard legal fees or £300 cashback on completion, and free standard valuation.

Other notable deals include a two-year fix at 65 per cent LTV at 2.84 per cent fee free, with free legal fees and standard valuation.

Each mortgage is available with a discounted reversion rate of 4.04 per cent for three years once the initial fixed rate period ends.

During the reversion rate period, landlords will not be required to pay any early repayment charges and can redeem their mortgage at any time. On the loan’s fifth anniversary, the mortgage rate will revert to Accord’s standard variable rate of 5.79 per cent.

Provider view

Chris Maggs, Accord’s Buy to Let commercial manager, said: “Not only does our new range offer enticing rates and a choice of incentives, landlords who are taking out a two or three-year product will also benefit at the end of the mortgage term, as they will revert to our discounted reversion rate or have the option of transferring to another attractive product available for existing borrowers.

“We are constantly reviewing our buy-to-let mortgages to offer the best fit for landlords, and we hope that this combination of benefits will really appeal to landlords and brokers looking for the best option to suit their individual requirements.”

Adviser view

Jane King, mortgage adviser at London-based Ash-Ridge Private Finance, said: “Quite a few lenders are reducing their two-year fix rates at the moment. The market for these deals remains competitive, and I think we will see more rate reductions and more deals offering incentives to clients in the future.

“There is a huge demand for two-year fixes, especially now three and five-year deals are getting more expensive. I often do large mortgages, and I find that the difference between a two-year and three-year can amount to hundreds of pounds.”

Charges

Ranges from fee free to £2,495

Verdict

It has been a busy couple weeks for Accord. The lender launched new deals and reduced the rate on a number of its existing products throughout February. The provider’s recent activity reflects its ambition to dominate the mortgage marketplace.

Two-year fixes offer a constant level of monthly repayment for a relatively short period of time. Many landlords have been burnt by steep early repayment charges after leaving long-term fixes early.