Accord Mortgages has revamped its mortgage range with changes that will help both borrowers with smaller deposits, and those who choose to offset savings against their mortgage.
The intermediary-only lender has reduced rates on its high loan-to-value (LTV) mortgages by up to 0.20 percentage points, with 90% LTV rates now starting at 2.04% for a two-year fixed rate mortgage. This rate is available to those buying a house or remortgaging, and comes with a £995 completion fee.
A fee-free five-year fixed rate of 2.78% is available to borrowers purchasing a property with a 10% deposit looking to fix their mortgage for longer, which comes with £1,000 cashback and free standard valuation.
For borrowers with a 5% deposit, a two-year fixed rate is available at 3.18% for house purchases. This mortgage comes with £1,000 cashback, free standard valuation and a £495 completion fee.
Jemma Anderson, mortgage manager at Accord Mortgages, said: “We’re confident our new mortgage range will be welcomed by brokers whose clients have smaller deposits, and with our 95% range of remortgages available for capital raising too they could also benefit people looking to improve their home rather than move.”
The lender has also revised its offset mortgage range, with rates starting at 1.99% for a two-year fixed rate remortgage at 75% LTV. This rate comes with £250 cashback, free standard valuation and free legal lees, with a £995 completion fee.
For borrowers buying a house with a 25% deposit and looking to use their savings to reduce the interest paid on their mortgage, Accord offers a two-year fixed rate of 2.00% with a £995 completion fee.
Anderson added: “While offset mortgages may not suit all borrowers and therefore cases may be few and far between for brokers, we do still see appetite for them in the market, in particular for those who could afford to repay on a capital and interest basis, but choose only to repay the interest.
“With reduced rates, the ability to significantly overpay without penalty and options available on an interest-only basis, offset mortgages could provide additional options for brokers whose clients have savings, to explore.”
Accord Mortgages’ interest-only options are available up to 75% LTV, have no minimum loan amount and require only £200,000 equity if sale of property is used as a repayment vehicle.