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Kensington, Accord and Coventry BS cut rates; Hodge scraps ERCs – round-up

  • 18/02/2020
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Kensington, Accord and Coventry BS cut rates; Hodge scraps ERCs – round-up
A trio of lenders have cut mortgage interest rates while Hodge has made a notable change to downsizing protection on its wider mortgage portfolio.


Coventry for intermediaries

Coventry for intermediaries has reduced rates across its owner-occupied mortgage range, excluding 95 per cent loan to value (LTV), by up to 0.16 per cent. 

For example, the fee-free two-year fixed product at 50 per cent LTV has been cut to 1.55 per cent from 1.69 per cent until 31 March 2022.

And the five-year fixed at 85 per cent LTV with a £999 product fee has been reduced from 1.89 per cent to 1.75 per cent until 31 March 2025.  

The lender has also reduced rates across its entire Flexx for Term range by 0.10 per cent 

Kevin Purvey, director of mortgage distribution at Coventry Building Society, (pictured) said: “Our owner-occupied mortgages are now even more competitive.” 


Kensington Mortgages

Kensington Mortgages has made changes to its residential and buy-to-let offerings, including its Help to Buy range.

For Help to Buy, rates are being reduced by 20 base points (bps) and 25bps on two and five-year fixes respectively.

Rates now start at 3.29 per cent for two-year fixed and 3.89 per cent for five-year fixed at 75 per cent LTV and both include free valuations and £500 cashback.  

Loan sizes on the Select range have also been increased up to £2m on 80 per cent LTV, £1.5m at 85 per cent LTV and £1m to 90 per cent LTV.  

Across its Buy to Let product offering, Kensington has reduced the £70,000 minimum loan size to £25,001. This includes individual landlords, limited companies, homes in multiple occupancy (HMOs) and multi-unit blocks, and those on the Property Plus product for homes with non-standard construction.  

For its buy to let range, rates have been reduced at 85 per cent LTV by 0.25 per cent on two and five-year fixes, starting at 4.39 per cent and 5.09 per cent respectively.  

Craig McKinlay, new business director, Kensington Mortgages, said: “These rate reductions and other product changes seek to provide borrowers and landlords increased flexibility and choice across our ranges.  

“While Help to Buy may soon be ending as we know it, we want to give first-time buyers, who may otherwise have been turned away from the high-street for being too ‘complex’, the best chance of home ownership.”   



Accord Mortgages has lowered rates on a selection of residential fixed rate products including its high LTV offerings. 

At 90 per cent loan-to-value, reductions include a two-year fixed rate now at 2.02 per cent, down from 2.07 per cent. This product comes with a fee of £995 and is available for both house purchase and remortgage clients.  

For house purchasers wanting a larger loan, there is the two-year fixed rate at 90 per cent LTV which is now 2.16 per cent, cut from 2.26 per cent. The five-year fixed at 90 per cent LTV has also seen a rate cut from 2.49 per cent to 2.40 per cent.  

Both products have a £995 fee, £500 cashback, free valuation and are available up to a loan size of £600,000. 

Rates on longer term products have also been reduced.  

For both house purchase and remortgage clients, the updated products include a 15-year fixed rate at 75 per cent LTV at 2.77 per cent down from 2.89 per cent; a 10-year fixed rate at 75 per cent LTV at 2.29 per cent cut from 2.32 per cent, and a seven-year fixed rate at 75 per cent LTV at 2.27 per cent down from 2.30 per cent. 

All these products come with a £495 fee and free valuation. 

Jemma Anderson, Accord product manager, said: “It’s been a positive start to the year, so we reviewed our range to ensure we’re offering a competitive mix for brokers.” 


Hodge removes ERCs

Hodge has extended its Early Repayment Promise (ERP) feature across all of its residential mortgage products, allowing customers to sell their property without any early repayment charges.

Hodge originally offered downsizing protection alongside its equity release product range and offered a version of this feature on its fixed-for-life retirement interest-only mortgage and its holiday let products. 

It has now extended this protection to all its mortgages. It is also applicable for customers who want to sell a property during the term of their mortgage and redeem the mortgage loan in full. 

Matt Burton (pictured), managing director of mortgages at Hodge, said: “ERPs, or downsizing guarantees as they are also called, are attractive and very popular in the equity release market and so we saw no reason not to extend this attractive proposition to the rest of our products.” 


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