Accord offers offset incentive for borrowers

Accord offers offset incentive for borrowers

Accord Mortgages is giving borrowers who complete an offset mortgage a £1,000 incentive.

From today (6 January) all borrowers who complete on an offset mortgage with the lender will be credited with £1,000 in their linked offset savings account.

It is designed to help borrowers to reduce the amount of interest they have to pay on their mortgage and is available for a limited time.

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Accord has also extended its range of offset mortgages for both house purchase and remortgage customers.

David Robinson, Accord’s national intermediary sales manager, said: “Offsets are an appealing option for borrowers in the current low rate environment.

“The more money a borrower has in their savings account the less interest they pay on their mortgage, enabling them to reduce monthly repayments or pay their mortgage off early.

“We wanted to give borrowers a little boost to ensure their offset account works harder for them, plus we hope it will provide brokers with an additional selling point when discussing the benefits of offset mortgage to their clients.”

The offer is guaranteed only for a limited period. Accord has said it will definitely be available until Friday 20 January but has said it will extend it if it can.

Borrowers can opt for a two-year offset at either 2.14 per cent at 75 per cent loan-to-value or at 2.24 per cent at 80 per cent LTV.

Both mortgages do not have a product fee and come with free standard valuation, plus the £1,000.

A longer fix is available with a choice of five-year offsets, including a 2.49 per cent mortgage at 75 per cent LTV which comes with a £995 fee.

Jeremy Duncombe, director of Legal & General Mortgage Club, said: “The offset market has been underserved over recent years, but this initiative from Accord should help re-focus brokers and customers on the product.

“A £1,000 deposit is a great way of making the offset work even harder for the customer, especially in such a low interest rate environment.”