Accord has scrapped its free standard valuation fee cap on properties valued at more than £1m.
The lender previously only paid any standard mortgage valuation charges on behalf of borrowers for properties up to the value of £1m, reaching an upper limit of £695.
For properties worth more than £1m, borrowers were required to pay the difference.
But now those borrowing larger amounts will not incur any costs if they take a free standard valuation option with their mortgage, potentially saving them hundreds of pounds.
Landlords will be unaffected by the change, as Accord does not have a cap on valuation fees for buy-to-let mortgages.
David Robinson, national intermediary sales manager at Accord, said it was unfair to disadvantage those paying more money to buy a home.
He added: “We hope our new ‘one size fits all’ approach to valuation fees will help those looking to take out larger loans, especially homeowners in London where house prices can easily exceed £1m.”
Alistair Murdoch, IFA at London-based Aurora Financial Solutions, welcomed the move and said it could help boost the capital’s housing market.
“Other banks have also scrapped fees for standard valuation,” he added. “I think Accord are doing it to make themselves more competitive and get some market share.”
simon.allin@ft.com
