Mortgage News
Accord 10-year fix ‘fills market gap’
Accord Mortgages has launched two ten-year fixed rate mortgages offered at up to 75% LTV, which Charcol said ‘fills a gap in the market’.
Parent company Yorkshire Building Society said the long-term swap rates had fallen sufficiently to offer a well-priced ten-year fixed rate.
“We are expecting a rise in interest rates and certainly think there is a market for an attractive long-term fixed rate right now,” said the spokesperson.
Ray Boulger, senior technical manager at John Charcol, said the offset product is the only fixed-rate offset mortgage available for more than five years and that many lenders only offer best rates to 70% LTV. He added that if base rate stays below 3% for ten years, the lengthier product will be cheaper.
The ten-year fixed offset deal at 5.54% is available up to 75% LTV, with an arrangement fee of £995, while Accord’s non-offset ten-year fixed has a market leading rate of 5.24% and an arrangement fee of £1995.
Boulger said: “The launch of such a product brings into focus that there are a wealth of options for borrowers and that no generic advice will do.”
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