Accord increases buy-to-let cashback offer

Accord increases buy-to-let cashback offer

Accord has increased its cashback offer on the two-year fixed rate mortgages in its buy-to-let range.

The lender has introduced an additional £250 cashback on two-year fixed 60 per cent and 65 per cent loan-to-value (LTV) mortgages.

The changes have been made to both the house purchase and remortgage range. Purchasers are offered a rate of 1.72 per cent with £500 cashback at 60 per cent LTV, while those remortgaging can do so for 1.82 per cent at 65 per cent LTV, also with £500 cashback.

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Chris Maggs, commercial manager at Accord Buy-To-Let, said the levels of cashback had been reviewed to provide additional financial support to landlords.

He said: "Our range of products are available to first time landlords, existing landlords and customers looking to re-finance their existing residential mortgage on a buy-to-let basis where they intend to purchase a new residential property.

"Coupled with competitive affordability calculations we believe we are providing exceptional options for landlords as well as spreading a bit of festive cheer."

Rachel Springall, finance expert at Moneyfacts, said lenders were likely to be assessing their end of year targets which can be reflected in changes to product ranges.

She said borrowers looking to remortgage may want to consider new cashback offers, but must assess the overall true cost and not be swayed by the free cash alone.

She said: "As we have seen over just the past month, some of the biggest lenders have launched or increased their cashback offers to attract potential year-end borrowers on their mortgage range.

"If lenders are expecting a shortfall, one effective way to drum up new business is to compete not just on interest rates, but also lucrative incentives.

"Cashback, free valuation and free legal fees will no doubt entice borrowers looking to keep initial costs down so it is always encouraging to see more of these deals grab the limelight."

Ms Springall added: "There is no guarantee that these deals will be around for long either, but they could suit those in a rush to remortgage and who have no spare cash to fund any fees to switch their deal in the run up to Christmas."

Last week research suggested the number of mortgage products offering cashback incentives in the market had dropped by 82 percentage points in the last six months, to stand at 4 per cent. 

The figures, released by broker Cashback Remortgages, found one in 24 products offered the incentive but the average size of the cashback deal had increased by £100 since last year.