Brokers welcome Accord Buy to Let’s changes to its remortgage range
Brokers have welcomed changes that Accord Buy To Let has made to a selection of remortgage deals.
The intermediary-only lender has launched a 1.94% 2-year fix for remortgaging landlords with a 35% deposit. This mortgage has a £1,495 fee plus free standard valuation and no legal fees.
Other remortgage deals available include a 2.84% 5-year fix at 65% loan-to-value and a 2.94% 5-year fix at 75% LTV. Both mortgages come with a £950 fee, free standard valuation and no legal fees, plus £500 cashback on completion.
Jonathan Burridge, The Mortgage Broker, thought the changes were good for Accord. He sees them as trying to take business away from Santander.
He said: “Rates come, rates go. Accord is trying to take some of the business from Santander at the lower loan-to-value. They’re a good lender and will attract plenty of business within their target audience. They’re trying to get market share on the lower risk business.”
Ray Boulger, senior technical manager at John Charcol, welcomed the changes but thought they were competitive, not market leading.
He said: “Choosing the right buy-to-let mortgage is about a lot more than just comparing rate and fees, particularly for portfolio landlords, but Accord’s 135% rental cover on the existing portfolio will be helpful for some clients.
“A free valuation on remortgages is undoubtedly an attractive feature for borrowers, as of course is a good cashback and free legal fees. A free valuation on purchases is helpful but should therefore not lull borrowers into a false sense of security and they should still seriously consider instructing a HomeBuyers Report.
The 5-year fixes mentioned are unchanged from Accord’s current rates. The deals mentioned are competitive, but not market leading. The smaller the mortgage and the shorter the term of the deal, the bigger the impact of costs on overall value.”
For landlords looking to expand their portfolio there is a 2.39% 2-year fix at 60% LTV, or a 2.69% 2-year option at 75% LTV which come with a free standard valuation and £500 cashback on completion, and have no product fee.
Chris Maggs, commercial manager at Accord Buy To Let, said: “Whether you’re a portfolio landlord with four or more properties or a landlord with a smaller portfolio these new products, coupled with competitive rental affordability requirements, are sure to prove popular with brokers and landlords.
“Our most preferred mortgages amongst landlords tend to be those which offer three key incentives, a free basic valuation, free legal fees covering standard legal work and a cashback. There has probably never been a better time to remortgage with Accord.”