Accord has launched a range of remortgage products as competition heats up for the £35bn-worth of loans due to mature in Autumn.
The intermediary-only arm of the Yorkshire Building Society is offering a 1.65 per cent two-year fixed rate mortgage at 85 per cent loan-to-value (LTV), with a £495 fee and £500 cashback on completion.
A five-year fixed rate is also available at 1.97 per cent up to 65 per cent LTV, with no product fee and £250 cashback on completion.
Both deals also include free standard valuation and free legal fees.
According to CACI’s Mortgage Market Database, £35bn-worth of mortgages are due to mature in September and October, making it the largest maturity period in five years.
Lenders have been dropping their remortgage rates to compete for business, with Aldermore, Scottish Widows, Yorkshire and TSB unveiling some of their lowest-ever deals.
Accord recently revealed it had seen a 60 per cent spike in remortgage applications over the summer months.
The lender has also reduced rates on selected mortgages across its 65 per cent, 75 per cent, 80 per cent and 85 per cent LTV ranges by up to 0.31 percentage points.
Highlights for homebuyers include a 1.79 per cent two-year fixed rate at 85 per cent LTV and a 1.80 per cent three-year fix at 75 per cent LTV, both of which come with £250 cashback on completion and free standard valuation.
David Robinson, national intermediary sales manager at Accord, said: “These changes make our mortgage range really competitive, which we hope will appeal to both brokers and their clients.
“We know that borrowers appreciate additional extras to manage the upfront costs of taking out a mortgage, so we have peppered our range with incentivised features. This includes free legal fees which continue to be a popular choice amongst our remortgage borrowers.”
Martin Stewart, director at London Money, said: “That is quite aggressive pricing. I think it is due to a combination of a huge amount of two-year money that is up for grabs, and what we have got now that we didn’t have two years ago is product transfers, so the banks are going to be very aggressive and targeted on the remortgage front.
“It is the last quarter of the year, and there is always a big push for business in the last quarter. I would be surprised if we did not see more lenders doing that next week.”
simon.allin@ft.com
