With swap prices soaring by over 0.75% and still climbing, discounted products can offer borrowers excellent value. Even with the recent concentration on fixed rates, one in every five loans so far this year has been on a discount and Accord reckons this percentage is set to rise dramatically.
Accord’s Managing Director, Linda Will, said “If you look at the new fixed rates appearing now, borrowers will be much better off today selecting a discount and highly unlikely to be worse off in the foreseeable future.
“For example, Abbey National’s new 2 year fix up to 95% LTV is priced at 4.49%. If you compare that to our new 2 year discount with a rate of 3.19%, the advantage is obvious. Our base rate would have to rise by 1.3% to wipe out that advantage – and that would have to happen from day 1.”
The products are available from 8th August 2003
