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Measured BTL entry from Accord

Accord Mortgages, the intermediary arm of Yorkshire Building Society, has entered the buy-to-let market initially with two-year fixed rates available only to intermediaries with London & Country Mortgages and The Buy-To-Let Business.

Accord will unveil buy-to-let products for the rest of its selected intermediary partners later in the year and has further limited its initial product launches to properties in London and the South East.

The initial products are fixed at 4.29 per cent up to 65 per cent of valuation and 4.59 per cent to 75 per cent LTV. There is a £995 fee for both products, comprising a £195 booking fee and £800 arrangement fee.

Some advisers may be looking forward to more buy-to-let deals from this Accord. However, it distributes products only through selected intermediaries, so not all IFAs will have access to its buy-to-let deals.

Defaqto insight analyst for banking Kevin Bray says: “Both deals are competitively priced at 4.29 per cent for 65 per cent LTV and 4.59 per cent for 75 LTV and both charge a £195 booking fee and £800 arrangement fee. Both products are available for house purchase and re-mortgage but not available to first time buyers. Rental income must cover at least 125 per cent of the monthly mortgage payment.
 
“Skipton is offering a two-year fixed at 3.69 per cent up to 70 per cent LTV but charges a higher arrangement fee at £2,495. Aldermore has a 4.18 per cent two-year fixed up to 75 per cent LTV with an arrangement fee of £1,999. Both these competitors offer a lower rate than Accord, but if you look at the total cost of the rate and fee over the initial fixed-rate period based upon a typical mortgage of £150,000, then there is little to choose between the respective products.”

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