Accord strikes the right note

The company says the range is its response to demand for deals for smaller loans with low fees. One of the deals it offers is fixed at 3.74 per cent for two years, with the incentive of a £500 cashback.

This mortgage has a minimum loan of £50,000 and a total arrangement fee of £495, which comprises a £400 completion fee plus a £95 booking fee. An early redemption charge of 3 per cent of the amount repaid will apply if the mortgage is repaid in the first two years, but capital repayments of up to 10 per cent a year are allowed without penalty during the fixed-rate period.

As part of the same range, Accord is offering a similar deal without the cashback, fixed at 3.64 per cent. Some borrowers may feel the lack of incentives is worth it to get the lower rate.

Defaqto insight analyst for banking David Black says: “The average rate charged for a two-year fixed-rate mortgage at 85 per cent LTV is 4.29 per cent with a £722 fee.
“The surprise with Accord’s new product is it’s maximum loan limit of £150,000, which at its maximum LTV of 85 per cent equates to a property price of £176,471. At this level, both the Hanley Economic and the Yorkshire Building Society are leading the pack with their rates of 3.34 per cent and a £495 fee, but they are only available direct. Both of these also offer a free standard valuation and a £250 cashback.

“Taking account of the £500 cashback, Accord’s mortgage is the most competitive deal currently available through intermediaries.”