Accord has launched a range of mortgages designed to help homebuyers and remortgagors, including those seeking larger loan sizes.
From today (23 May), borrowers with a 40 per cent deposit will be able to take out a 1.07 per cent two-year tracker mortgage with no early repayment charges, while those with a 35 per cent deposit can opt for a 1.14 per cent two-year fix.
Other highlights from the intermediary arm of the Yorkshire Building Society include two-year fixes at 1.19 per cent up to 75 per cent loan-to-value (LTV), 1.29 per cent up to 80 per cent LTV and 1.38 per cent up to 85 per cent LTV.
All of the mortgages come with a £1,995 product fee and have a maximum loan size ranging from £1m to £3m.
Accord’s national intermediary sales manager David Robinson said: “We believe our latest offerings will provide borrowers looking for a larger loan size with a wide range of competitive options and will prove extremely popular with brokers.”
Tom Oliver, IFA at Newcastle-based Lamb and Associates, said the mortgages were a “cracking deal” for those who are chasing rates – but they are not the type of product he recommends to clients.
“The product sounds really competitive, but I don’t generally advise on two-year fixes unless there is a very strong reason,” he added.
“It would have to be a really positive, strong reason for a two-year fix because you have no idea what Brexit is going to bring with interest rates, and the client could face some serious issues.”
Ian Ward, managing director at Wirral-based The Mortgage Partnership, said: “This is a highly competitive sector and Accord is responding to the need to maintain and increase market share. They have aimed it at the client looking for a larger mortgage to give it some differentiation from others.
"It is an attractive and highly competitive offering, but the rate differences are wafer-thin across the board and for brokers the main consideration will be the service they receive.”
simon.allin@ft.com