Accord removes upfront mortgage application fee

Accord removes upfront mortgage application fee

 Accord Mortgages has announced it has removed its mortgage application processing fee, meaning borrowers will no longer be charged at the appoint of applying for a home loan.

Any mortgage application submitted from last Wednesday 5 October onwards will no longer incur the £130 processing fee.

Accord has removed the processing fee from all residential mortgage applications and is currently reviewing extending this to buy-to-let applications.

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David Robinson, national intermediary sales manager at Accord, said: “Taking out a mortgage can be costly, so by getting rid of this administration charge we have removed a barrier for those making initial investigations into borrowing with us.

“We know that people’s circumstances can change, and not every mortgage application comes to fruition, so we believe it’s fairer to remove this cost for borrowers. Brokers can now submit applications with the assurance that their clients won’t have to pay any product fees until the mortgage has completed.

“We hope this change will appeal to both brokers and their clients, and will help to reduce the upfront costs of getting a home loan - especially for those who opt for one of our fee-free mortgages.”

Ian Gwinnell, director at All Counties Financial said: "They have to do this to remain competitive.

"There's so many lenders who don't have initial fees on the market so they have to do this."