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Accord makes sweeping rate reductions as momentum grows for longer fixes
Accord has announced a raft of rate reductions to come into effect on 26 March, as borrower appetite for five- and ten-year fixes grows.
Accord, the intermediary-only subsidiary of Yorkshire Building Society, has reduced the rate of its 10-year fix at 65% loan to value (LTV) by 0.20% to 2.49%.
The product will come with a £995 product fee, and standard valuation.
Accord said this was in response to borrowers’ growing appetite to secure longer-term deals.
The proportion of completions for five-year fixes rose by 70% from January to December 2017, from 20.86% to 35.55%.
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And while 10-year options represent only a small percentage of overall lending – growing from 0.52% to 0.72% of completions over the same period – it represented a 39% proportional increase, the lender noted.
“Borrowers are seeking security during economic and political uncertainty so it’s no surprise that homeowners want to fix for longer,” commented Accord mortgage manager Ben Merritt.
“Homeowners have been fortunate not to experience a rate rise in almost 10 years, and may have been unsettled last autumn by the first of what is predicted to be many.
“As applications for 10-year fixes are gaining momentum we have reduced the rate on our decade-long deal, which we hope will appeal to brokers who are helping clients to find a competitive long-term option.”
In addition to the rate slice on the 10-year deal, Accord has also reduced rates on 27 mortgages across its 75%, 80%, 85% and 90% LTV range by up to 0.25%.