Accord Buy to Let has launched a discounted reversion rate, aimed at improving affordability for landlords following the fixed rate period of their mortgage.
Landlords coming to the end of a two-year or three-year fixed or tracker rate mortgage can benefit from a new reversion rate of 4.04% until the fifth anniversary of their mortgage – a 1.75% discount from Accord’s standard variable rate (SVR) of 5.79%.
Landlords on the discounted rate won’t have to pay any early repayment charges after their initial term, and can redeem their mortgage at any time.
The discounted reversion rate is available on all Accord Buy to Let mortgages.
A borrower with a £160,000 mortgage who reverts to the 1.75% discount will pay £19,278 interest in the three years following their initial two-year fixed rate, compared to £27,792 if they had simply reverted to SVR. This results in a £8,514 saving over the three-year period.
After five years the mortgage rate will revert to Accord’s standard variable rate. Any landlords opting for one of Accord’s five-year mortgages will revert to the standard SVR at the end of the term.
Chris Maggs, Accord’s buy to let commercial manager, said: “Recent market reforms mean landlords have additional hurdles to factor in when calculating their property costs. We believe it is important to give landlords a helping hand to ensure they can meet their mortgage repayments.
“Our discounted reversion rate gives landlords breathing space after their initial mortgage term ends, whilst being on a competitive rate. They have the added bonus and flexibility of no early repayment charges whilst they see where interest rates are heading.
“We believe the safety net our discounted reversion rate offers will appeal to brokers trying to find the best fit for clients who are planning for the long-term.”