Accord Cuts Residential Mortgage Rates by Up to 0.30% and Lowers Minimum Loan Sizes

Accord Mortgages is set to implement significant rate reductions across its residential new business range and lower its minimum loan requirements starting July 6th. The changes include cuts of up to 0.30% on two-year fixed rates and up to 0.29% on three-year fixes, alongside a reduction in the minimum loan size from £50,000 to £30,000 for selected products. These moves signal a strategic effort to increase accessibility for borrowers with smaller loan needs and those seeking high-LTV options in the current market.

Accord Mortgages has announced a comprehensive update to its residential lending criteria and pricing, effective from 8am on Monday, July 6th. The lender is reducing rates across its new business range, with two-year fixed rates dropping by as much as 0.30% and three-year fixes by up to 0.29%. Additionally, five-year fixed products will see reductions of up to 0.21%. To further support the market, Accord is lowering its minimum loan size on selected products up to 75% loan-to-value (LTV) from £50,000 to £30,000, providing more options for borrowers with lower capital requirements.

The refresh also marks the reintroduction of products at 65% LTV starting from 4.47% and 80% LTV starting from 4.54%. Notable product adjustments include a 95% LTV two-year fixed purchase mortgage, which has been reduced from 6.69% to 6.39% and carries a £495 fee. For those looking to remortgage, a two-year fixed product at 80% LTV has been lowered from 4.90% to 4.72%, featuring a £1,495 fee and a £500 cashback incentive.

First-time buyers are specifically targeted through improvements to the 5K Deposit Mortgage scheme. The rate for this fee-free five-year fixed product, which allows for a £5,000 deposit on homes worth up to £500,000, has been cut from 6.64% to 6.44% and includes a standard valuation and £300 cashback. Jeremy Duncombe, managing director of Accord Mortgages, emphasized that these changes are designed to offer greater flexibility and choice, particularly for those with smaller borrowing requirements or those utilizing innovative low-deposit solutions to enter the housing market.