Accord Mortgages will lower select residential and buy-to-let (BTL) rates by up to 0.25% and will cut its interest cover ratio rate (ICRR).
The changes will come into effect from 4 February, with cuts of up to 0.1% on select residential deals from 75% loan to value (LTV), while its two- and three-year fixed BTL rates up to 85% LTV will fall by up to 0.25%. Five-year fixed buy-to-let (BTL) rates will decrease by around 0.2%.
Tracker rates will reduce by around 0.05%.
Highlights for residential borrowers include its five-year fixed purchase rate at 75% LTV, which will decrease from 4.64% to 4.54%. It comes with a £1,995 fee, £250 cashback and free standard valuation.
The firm’s two-year purchase fixed rate up to 85% LTV will decrease from 5.05% to 4.98%. It has a £495 fee, £500 cashback and free standard valuation.
Accord Mortgages’ five-year remortgage fix up to 90% LTV will be reduced from 5.17% to 5.07%. This comes with a £495 fee, remortgage legal service and free standard valuation.
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For landlord borrowers, new deals include a two-year fixed remortgage rate at 60% LTV priced at 4.39%, which comes with a £3,495 fee, remortgage legal service and free standard valuation.
Within its BTL range, the lender has also lowered its three-year purchase fix at 65% LTV to 4.74%. It is subject to a £995 fee, £250 cashback and free standard valuation.
Accord Mortgages’ five-year BTL remortgage fix up to 80% LTV will be priced at 5.29%. It comes with a £995 fee, remortgage legal service and free standard valuation.
The lender is also tweaking its ICRR, which assesses background properties a borrower may have for affordability. The rate will fall from 5.5% to 5%.
Gemma Hyland, mortgage product manager for Accord, said: “We’re thrilled to introduce these changes, which refresh both our residential and buy-to-let ranges, passing on the benefit of these more favourable market conditions to all our borrowers and ensuring we provide the best value wherever we can.
“The ICRR changes on background properties are a positive step designed to support borrower affordability and help them to achieve their home or property ownership dreams.”
Last week, Accord Mortgages lowered its BTL product transfer fixed rates by up to 0.28%.
Molo lowers BTL rates
Specialist BTL lender Molo will reduce select two- and five-year fixed rates by up to 0.2%, effective immediately.
For standard products, two-year fixed rates begin at 3.25% for individuals and limited companies, while two-year specialist fixed rates start from 3.5%.
Molo’s standard five-year fixed rates are priced from 4.85% and its specialist rates start from 5.1%.
Martin Sims, Molo’s distribution director, said: “Brokers play a crucial role in helping landlords secure the right financing. By reducing our rates, we are giving intermediaries even stronger options to support their clients, whether they are growing their portfolios or securing their first investment property.”
