Accord Mortgages puts out new 5.49% fixed-rate deal
Wednesday, 30 Jul 2008 12:24
Accord Mortgages announced today it is to begin offering a new two-year fixed-rate deal mortgage deal at 5.49 per cent.
However, the sting in the tail is a 2.5 per cent fee on the product – which could add up to £5,000 in costs to a £200,000 mortgage.
The deal also has a maximum loan-to-value ratio (LTV) of just 60 per cent, leaving borrowers to find 40 per cent of the cost of their property in the form of a deposit – meaning it will largely attract the remortgage market.
In contrast, HSBC today confirmed it was too cut fees on its fixed-rate deals by up to 0.31 per cent, with fees of just £599.
"We believe this product offers a genuine alternative for those borrowers who would prefer to fix their monthly payment at a lower rate than would otherwise be available," said Cate Hillis, Accord Mortgages' strategic development director.
"With increasing food and utility bills, as well as the payment shock facing many borrowers coming to the end of their current fixed rate, this could be a genuine alternative.
"While the fee is comparatively high, this can be added to the loan and the mortgage allows overpayments up to ten per cent per annum should borrowers find themselves in a position to repay more quickly.
"We know this product isn't for everyone and we have a broad range of low fee and no fee product options available," he added.
According will also offer the following deals:
Two-year fixed-rates from 6.39 per cent.
Three-year fixed-rates from 6.45 per cent.
Five-year fixed-rates from 6.39 per cent.
Ten-year fixed-rates from 6.19 per cent.
All will have maximum LTVs of 90 per cent, with a selection of fee options available.
"We continue to give intermediaries choice for their clients and we're confident that we're presently offering one of the most competitive ranges available to intermediaries in the market," concluded Ms Hillis.
Chris O'Toole