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Nationwide cuts rates as Accord increases maximum loan limits – round-up

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  • 27/05/2020
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Nationwide Building Society is cutting mortgage interest rates by up to 0.25 per cent while Accord is removing maximum loan limits.

 

 

Nationwide is reducing rates on selected two-, three-, five- and ten-year fixed rate switcher mortgage products, and two-year tracker mortgages, by up to 0.25 per cent from 28 May.

The society will also be reducing rates on products with a £1,499 fee and its later life mortgage products by up to 0.40 per cent. 

For remortgages with a £1,499 fee, all products have had rates reduced by 0.05 per cent. The two-year fixed up to 60 per cent loan to value (LTV) now has a rate of 1.14 per cent and the five-year fixed up to 60 per cent LTV has a rate of 1.34 per cent. 

The two-year tracker remortgage with a £1,499 fee up to 60 per cent LTV has also had its rate reduced by 0.05 per cent to 1.24 per cent. 

Product switches from 60-90 per cent LTV have also seen rate cuts by as much as 0.25 per cent, as have two-year trackers from 60-85 per cent LTV.

Within its later life offering, Nationwide’s two-, three-, and ten-year fixes have all had rates reduced by 0.40 per cent. 

Nationwide director of mortgages Henry Jordan (pictured) said: “While the housing market slowly begins to open up again, the mortgage market continues to remain as competitive as ever.

“Although many borrowers continue to like the security of fixing their mortgage repayments, we know there are some who want to take advantage of these historic low interest rates by going for a tracker mortgage.  

These reductions demonstrate our commitment to offering competitive rates on both fixed and trackers across a range of LTVs, ensuring we support borrowers no matter how much deposit they have.”  

 

Accord lifts property value limits 

Accord Mortgages has removed all property value restrictions and returned its maximum loan size to £5m for residential and £1m for buy-to-let applications. 

lending limit was put in place at the end of March, in response to limitations around physical valuations due to the Covid-19 pandemic. 

With changes effective from 29 May, the lender is also increasing the maximum loan size for 90 per cent LTV products to £600,000. 

Accord has also cut rates on products at 75-85 per cent LTV. 

These include a two-year fixed purchase product at 1.64 per cent, down from 1.71 per cent, at 75 per cent LTV. The product comes with a £995 fee, £500 cashback and free valuation. 

Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Being able to remove the property value restrictions and increase our maximum loan size is the latest in a series of changes we have made to get back to our pre-Covid criteria wherever possible. 

“Following last week’s successful launch back into the 90 per cent LTV market we are also pleased to expand this range by re-introducing loans available up to £600,000.

“We first launched this offering back in November last year and had a very positive response from brokers, so it’s great to be able to meet the demand for these products once again. 

 

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