Mortgages  

Accord cuts LTV fixes

Accord Mortgages has cut the rate of interest on a number of fixed-rate deals at different loan-to-value (LTV) levels.

A two-year fixed to 75 per cent LTV is now available at 1.63 per cent with an £845 product fee. The deal comes with a choice of free standard valuation, and standard legal fees or £250 cashback on completion. It also offers free standard valuation for those looking to remortgage, and £250 cashback on completion and free standard valuation for house purchases.

At 90 per cent LTV, a loan fixed for 24 months, has been discounted to 2.39 per cent with an £845 fee and free standard valuation and standard legal work for remortgage customers, and £250 cashback on completion and free standard valuation for those who are buying a property.

Article continues after advert

Other notable deals include a three-year fix to 80 per cent LTV at 2.04 per cent, and 2.19 per cent with a £845 and £345 fee, respectively.

A mortgage application processing fee is applicable on a number of loans across the lender’s range of residential mortgages.

At the end of June, the intermediary-only lender, which is part of Yorkshire Building Society Group, revealed that changes to its underwriting processing led to a 28 per cent improvement on its mortgage offer turnaround time year-on-year from May 2015 to May 2016.

Provider view

David Robinson, National Intermediary Sales Manager, said: “We always try to offer brokers and borrowers a range of options and good, long-term value for money. By making these reductions and launching mortgages with different options, we are increasing the choice brokers can offer their clients.”

Adviser view

Mike Richards, director at London based Mortgage Concepts Associates Ltd, said: “There seems to be a move from clients to longer-term mortgage deals. Industry lenders have identified this trend and have responded by launching competitive five and 10 year deals. I think the peace-of-mind factor is one of the main reasons why clients choose longer-term deals. The difference between two and five-year fixes is not very much now, but there are many clients out there who are just interested in the cheapest rates.”

“I was surprised by the Bank of England’s decision to maintain rates because we all thought it would fall to 0.25 per cent. In some way, the decision adds a degree of stability to the mortgage market because lenders will not have to scramble to revise their range of mortgages.

I think there will come a time where lenders will stop discounting rates because it would no longer become economical for them to do so to get a small slice of the market share.

Charges

Aforementioned loans charges range from £345 to £845.

Verdict

Accord is one of the more active lenders in the marketplace. The lender is notorious for making small discounts to its range of loans – presumably to develop a reputation as a provider that does not shy away from competition.

The marketplace has been far from stagnant over the past two years. In late 2014, many mortgage intermediaries held their breath for a widely forecasted rise in the base rate. The same advisers gasped in shock following the news that the Bank of England opted against lowering the rate of interest to 0.25 per cent.