The largest cuts in the residential range are aimed at borrowers with smaller deposits, with rates on selected 95% loan-to-value (LTV) products falling by up to 0.18%. The lender’s £5k Deposit Mortgage will also see rates reduced by 0.18%.
For landlords, Accord Mortgages is reducing rates across its 80% LTV BTL range. Two-year fixed rates will fall by up to 0.12%, while selected five-year fixed rates will decrease by up to 0.09%.
Within the residential range, a two-year fixed mortgage for house purchase at 95% LTV has been reduced from 6.33% to 6.15%. A fee-free five-year fixed mortgage for first-time buyers with a £5,000 deposit has also been reduced from 6.52% to 6.34%.
Selected BTL products have also been repriced. A two-year fixed purchase product at 80% LTV has been cut from 5.84% to 5.79%, while a two-year remortgage product at the same LTV has been reduced from 5.89% to 5.77%. Both products come with a £995 fee, £250 cashback and a standard valuation.
Jeremy Duncombe, managing director of Accord Mortgages, said: “These latest rate cuts will help brokers to help their clients with a smaller deposit to take a step towards homeownership, while providing landlords with more competitive options when buying or remortgaging a buy-to-let property.”
Your First Home: confidence to build
Sponsored by Halifax Intermediaries
Vida raises LTVs for undervalue transactions
Vida Homeloans has increased the maximum LTV to 90% for Purchase at Undervalue cases.
The lender will increase the maximum advance to 100% of the discounted purchase price for landlord-to-tenant purchases, subject to a maximum of 90% of the open-market value. For landlord-to-tenant purchases, the property must have been rented by the customer for 12 months.
David Angel, managing director of mortgage product management at Vida Homeloans, said: “Our intermediary partners have told us that customers needed more support with undervalue transactions, with family members or landlords not able to give a 25% reduction on the purchase price.”
Vida Homeloans has also widened the proportion of Universal Credit to be considered for affordability from 50% to 75%, less any housing allowance for children over 12. Furthermore, it reduced the supporting evidence requirement from 12 months to three months of Universal Credit award statements.
