Brokers are pleased that Accord has reduced rates across its fixed rate mortgage range by up to 0.18%.
For buyers there’s a 2.15% 2-year fix at 80% loan-to-value. This fee-free mortgage comes with £500 cashback on completion and free standard valuation.
Available to both house buyers and remortgage customers is a 1.68% 2-year fix at 80% LTV with a £995 fee.
While remortgaging customers with a 25% deposit could opt for a two-year deal at 2.01%, which has a £495 fee, plus £500 cashback on completion and free standard valuation.
Jonathan Burridge, sales manager at The Mortgage Broker, said: “Lenders dip in and out. This is great news for Accord, showing they’re hungry for business.”
Ray Boulger, senior technical manager at John Charcol said: “Overall it’s certainly good news. I think it’s another example of how competitive the market is with volumes and the amount of new remortgage business.
“There’s a focus on remortgage lending because there’s not much scope in purchase lending since lenders are restricted by the housing market.
“There’s an increase in products with a decent cashback as well as cutting fees. The 2.15% is not only without an arrangement fee, but has 500 cashback too. This is much bigger in terms of the value on 2-year deals than 5-year deals.”
Boulger added: “All these rates are very competitive. The difference you pay for 80-95% mortgages has been steadily narrowing so more borrowers are getting access to cheaper rates.
“The free valuations on remortgages are good for borrowers saving costs but free valuations for purchases gives them a false sense of security because they may get a mortgage valuation and opt out of getting a homebuyers valuation report, which I urge them to get.”
Ben Merritt, mortgage manager at Accord, said: “We’ve spring cleaned our mortgage range to make it as competitive as possible for borrowers with differing budgets.
“The new range includes some fee-free options as well as home loans with additional features, such as cashback and free standard valuations, designed to help borrowers keep the upfront costs of buying or remortgaging low.
“We hope the new options will appeal to brokers and their clients.”