Accord launches 10-year fixed rate mortgage

Accord launches 10-year fixed rate mortgage

Accord has launched a new 10-year fixed rate mortgage, for buyers looking for protection from rising rates.

The lender’s new rate, at 2.69 per cent is available to house buyers or remortgage customers with a 35 per cent deposit and comes with a £995 product fee and free standard valuation.

Borrowers can make annual overpayments by up to 10 per cent without charge, and the mortgage is portable.

Jemma Anderson, mortgage manager at Accord, said: “We have seen demand for longer term fixes increase recently, which is possibly due to economic and political uncertainty as well as the potential upward trajectory of the Bank rate.

"So we felt it was important to offer a mortgage which will give borrowers long-term value for money and provide them with the reassurance of knowing exactly what their monthly repayments will be for a decade come what may."

Christopher Taylor, broker at London Mortgage Brokers Limited, said although he did not have much call for 10-year fixed rate mortgages this could be due to the typical age of the clients he deals with.

Mr Taylor said: "Perhaps it is because my clients are younger. I think there would be more call for this type of mortgage if they offered more flexibility - for example, redemption fees only for the first few years."

However, he said that the Accord product was competitively priced, though TSB's 2.49 per cent rate for up to 75 per cent loan-to-value (LTV) was cheaper.