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Accord adds discount SVR mortgages

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  • 02/01/2018
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Accord adds discount SVR mortgages
Accord Mortgages is adding three discounted standard variable rate (SVR) tracker mortgages from tomorrow.

The two-year deals are available at 60%, 80% and 90% loan to value (LTV) and open to house purchase and remortgage customers with a £495 fee and free standard valuation.

The 60% LTV deal is at 1.59% – based on an SVR discount of 3.40%. The 80% LTV loan is at 1.79% – based on an SVR discount of 3.20%. And the 90% LTV mortgage is at 2.09% – based on an SVR discount of 2.90%.

They have an interest rate collar of 0.00%, meaning if the Accord SVR of 4.99% increases or decreases the mortgage rate will be directly affected.

Early repayment charges (ERC) are 1%, lower than Accord’s typical fixed rate ERCs, and each home loan is portable to a new property without charge.

 

Bank of England Base Rate

Accord national intermediary sales manager David Robinson said: “We recently reduced our standard variable rate by 0.35%, so it feels fitting to launch new mortgages that are linked to it.

“While there was a minimal increase to the Bank Rate in November this doesn’t appear to have quashed the appetite for variable rate mortgages. A discounted SVR mortgage allows us to offer a competitive rate for those who want to keep repayments as low as possible but who understand the rates, and therefore their payments, may go up or down in future.

“It’s important that brokers reinforce the variable rate message to help their clients factor it into their budget but nonetheless we’re sure our new mortgages will be a welcome addition to our range,” he added.

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