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Accord to gift new offset mortgage customers £1,000

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  • 06/01/2017
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Accord Mortgages will give borrowers opting for an offset mortgage £1,000 to help reduce the amount of interest needed to pay on their mortgage.

The incentive is available for a limited period of two weeks and will be paid into the customer’s linked offset savings account once they complete on their mortgage. The cash can be withdrawn by the customer at any time, a spokeswoman confirmed.

Accord’s range of offset mortgages for house purchase and remortgaging has also been extended, including deals with no upfront fees.

Highlights from the new range include a two-year offset with a rate of 2.14% at 75% loan-to-value (LTV) or at 2.24% for 80% LTV. Both deals have no product fee and have free standard valuation.

A range of five-year offsets is also on offer including a 2.49% at 75% LTV with a £995 fee.

David Robinson, Accord’s national intermediary sales manager, said the £1,000 incentive will provide brokers with an additional selling point. “Offsets are an appealing option for borrowers in the current low rate environment,” he said.

“An offset mortgage works by literally offsetting a borrower’s savings against their home loan, so they only pay interest on the difference. The more money a borrower has in their savings account the less interest they pay on their mortgage, enabling them to reduce monthly repayments or pay their mortgage off early.”

Jeremy Duncombe, director, Legal & General Mortgage Club, added: “The offset market has been underserved over recent years, but this initiative from Accord should help re-focus brokers and customers on the product. A £1,000 deposit is a great way of making the offset work even harder for the customer, especially in such a low interest rate environment.”

The offer is available until Friday 20 January.

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