"Lower deposit mortgages are key to boosting the stalling first-time buyer market and making the rates on these increasingly attractive is great news."
From tomorrow, Accord Mortgages are making further reductions to their new lending residential products, specifically across higher LTV products.
Selected products at 75% LTV are reducing by up to 0.20%, rates at 80% LTV by up to 0.25%, and at 85% LTV by up to 0.45%. At 90% and 95% LTV product rates are reducing by up to 0.23%.
Highlights include a two-year fix up to 75% LTV, available for house purchase at 5.94%, down from 6.14%, which comes with a £1,495 fee, £250 cashback and free standard valuation.
A three-year fix at 85% LTV for remortgage clients has reduced from 6.10% to 5.95% with a £995 fee, remortgage legal service and free valuation.
In addition, a five-year fix up to 90% LTV is down from 5.75% to 5.60% with a £495 fee, £250 cashback, and free valuation.
As part of the changes, a number of products will be withdrawn from Accord's range.
Mortgage product manager, Gemma Hyland, said: “We’re so pleased to be able to take advantage of market sentiment and reduce rates again this week. These changes demonstrate our commitment to offering more competitive products and better value to brokers and their clients on an ongoing basis.”
Newspage sought the views of brokers for their thoughts.
Elliott Culley, director at Switch Mortgage Finance, said: "SWAP rates have been reducing recently, which is good news across the board. I think we will see more lenders reduce this week. The reductions will still be tentative in my opinion, as the economic outlook remains fragile. 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."
Justin Moy, managing director at EHF Mortgages, commented: "These are some substantial changes to the Accord range, which is particularly helpful for those who have a small deposit, with reductions of up to 0.45% suggesting that the outlook on rates is looking more positive by the day. Most lenders are grouping around similar pricing points on both short and long-term fixed deals. The question is how long, now, before we drop below 5% on a five-year fixed deal?"
Ranald Mitchell, director at Charwin Private Clients, added: "This is great news on the rate reductions, particularly on the higher loan-to-value deals. 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."
