Accord unveils new remortgage options

Accord unveils new remortgage options

Accord Mortgages is hoping to improve the home loan market by unveiling new remortgage options and reducing rates for higher loan-to-values (LTV).

The intermediary-only lender has today (Thursday, 15 February) launched five competitive remortgage options for borrowers with a 25 per cent, 20 per cent or 10 per cent deposit.

The new remortgage range includes a five-year fix rate at 2.09 per cent for 75 per cent LTV, which comes with a £495 product fee, £500 cashback on completion and free standard valuation.

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Ben Merritt, mortgage manager at Accord, said: "There is some trepidation amongst borrowers as the Bank of England suggested that interest rate rises may come thick and fast, so many are keen to lock into a good deal now.

"This is why we have decided to launch a choice of competitive options to suit a range of borrowing needs and budgets."

There are a number of options available to borrowers looking for a two-year deal – those with a 20 per cent deposit can enjoy a 1.70 per cent mortgage with a £495 fee plus £250 cashback on completion, free standard valuation and free legal fees. 

In addition, Accord has reduced rates on higher LTV mortgages to give a helping hand to first-time buyers and borrowers with small deposit sizes.

There is now a 3.65 per cent two-year fix rate for 95 per cent LTV, with a £995 fee, £500 cashback on completion and free standard valuation.

Alternatively, borrowers with a 10 per cent deposit can benefit from a 1.84 per cent two-year discounted standard variable rate (SVR) mortgage.

The variable rate home loan tracks the lender’s SVR, currently 4.99 per cent, at a discounted rate, and comes with a £495 fee and free standard valuation.

Mr Meritt added: "Our discounted SVR offerings may appeal to borrowers looking for flexibility and competitive monthly repayments over a short period.

"Borrowers can redeem their mortgage at any time during the discounted period and will only incur a 1 per cent early repayment charge (ERC), which is lower than our typical fixed rate ERCs."

Kusal Ariyawansa, a chartered financial planner at Manchester-based Appleton Gerrard, said: "Given the current rates, it is invariably better to select a longer-term fix rate as opposed to short term discounts, as this gives you peace of mind in knowing what the monthly outlay is.

"The key is to proactively plan to rid debt as a priority and such products will aid the customer and the adviser."