It reduces rates by up to 45 basis points
Accord Mortgages has announced changes to its residential new business range, with selected products having new rates from tomorrow, September 13.
The lender said the current new business range would be withdrawn at 10pm tonight, September 12, and the new range will be available from 8am tomorrow.
Part of the reprice are selected product rates at 75% and 80% loan-to-value (LTV), which will be reduced by 0.15% to 0.20% and 0.15% to 0.45%, respectively. Rates of selected products at 85% and 90% LTV LTV will also be slashed by 0.15% to 0.45% and 0.06% to 0.23%, respectively.
Selected product rates at 95% LTV will be reduced by up to 0.23% or increased by up to 0.12%.
The intermediary-only lending subsidiary of Yorkshire Building Society has recently made changes to its criteria to allow additional income types considered in providing loans to its borrowers.
“This is great news on the rate reductions, particularly on the higher loan-to-value deals,” commented Ranald Mitchell, director at Charwin Private Clients. “Lower deposit mortgages are key to boosting the stalling first-time buyer market and making the rates on these increasingly attractive is great news. With the demise of Help to Buy, 95% LTV mortgages are key to both upsizers and first-time buyers.
Elliott Culley, director at Switch Mortgage Finance, believes the reductions would still be tentative as the economic outlook remains fragile.
“Swap rates have been reducing recently, which is good news across the board,” Culley said. “I think we will see more lenders reduce this week.
“If the positive trends continue, we will see more lenders returning to the high 4% rates for low loan-to-value cases in the not-too-distant future. This will be for five-year fixed rates initially, but it would be a positive milestone to hit.”
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