Accord will add a suite of tracker mortgages with no early repayment charges to its residential new business range, while cutting selected fixed-rate loans by as much as 23 basis points.
The broker-only arm of Yorkshire Building Society says the loans offer tracker options up to 85% loan to value, starting at 54 basis points-plus Bank of England base rate, with no early repayment charges.
It says: “This means that borrowers taking out one of these products will have the flexibility to switch their deal without incurring penalties should they wish, while still benefiting from a competitive interest rate in the short term.”
The lender will also cut rates across its residential range at higher LTVs, with changes including a discount of up to 23bps at 75% LTV, 80% LTV and 85% LTV, and a reduction of up to 22bps for borrowers with the smallest deposits at 90% LTV and 95% LTV.
Highlights of the firm’s changes, which come to market tomorrow (2 November), include:
- Two-year trackers at 75% LTV, available for house purchase, at BoE base rate-plus 54bps. This comes with a £995 fee, standard valuation, and no early repayment charges
- Two-year fixes at 80% LTV, available for house purchase, at 5.61%, down from 5.84%, with a £1,495 fee and free standard valuation
- Five-year fixes at 85% LTV, suitable for remortgagers, at 5.41%, down from 5.51%, with a £495 fee, free standard valuation and remortgage legal service
Accord mortgage product manager Gemma Hyland says: “We’re constantly looking for ways in which we can help borrowers with outside-the-box solutions at this challenging time, and we hope the introduction of these new tracker products without early repayment charges will appeal to those who prefer to keep their options open while interest rates are changing frequently, while benefiting from a competitive interest rate in the meantime.
“Reducing rates demonstrates our commitment to offering products which are as competitive as possible, ensuring better value to brokers and their clients at all times.”
