Accord Mortgages has announced that further reductions will be applied across its residential mortgage range this week, by up to 0.13% for 5 year fixed rates at 90% loan to value (LTV) with a new choice of incentives. Remortgage customers can also now benefit from a new 3.26% 5 year fixed rate at 90% LTV, which is available with free standard valuation and free standard legal fees with a £845 product fee.
The lender is also now offering a 90% LTV 5 year fixed rate mortgage with a rate of 3.26% and a £845 product fee, which comes with £250 cashback on completion as well as free standard valuation. A new 5 year fixed rate is also available at 90% LTV from 3.44% with no product fee, although a £130 application processing fee does still apply – yet this includes £250 cashback and free standard valuation for customers buying a home, or free standard valuation and legal fees for those looking to remortgage.
The lender has undoubtedly been demonstrating extremely low rates recently, especially considering a 5 year fixed rate at 60% LTV from the lender currently stands only as low as approximately 2.25%, meaning there is only a 1% difference between the supposedly lowest and highest risk cases.
Following reports that lenders need to raise the bar when it comes to over-promising and under-delivering, Accord has clearly been setting up more of a platform in their lending space for higher LTV mortgages amidst the already competitive market when it comes to product and price. It is actions like these that will set successful lenders apart in the coming weeks.
This follows the news last week that Santander had also revealed new rates for high LTV mortgage deals, by launching 3 key account exclusives. These now include a 2 year fixed rate of 1.99% at 85% LTV, 2 year fixed rates of 3.14% and 3.59% at 85% and 95% LTV respectively, and a reduction from 3.64% to 3.39% for a 90% LTV product.