They are a 3 year reverse stepped tracker and a 2 year fixed rate, both available for house purchase and remortgage.
The key product features are as follows:
• 3 year reverse stepped tracker – Bank Base Rate plus 3.49% in year one, dropping to BBR + 2.99% in year two and BBR +1.49% in year three. £995 arrangement fee and maximum LTV of 75%
• 2 year fixed rate – 5.99% with £995 arrangement fee and maximum LTV of 85% including £400 cashback
Martyn Smith, head of mortgage products at Legal & General, said: “A reverse stepped tracker is not a mortgage product that you will see every day, but an unusual mortgage market calls for innovative solutions. It’s a product which helps protect the borrower against future rate increases. We think that it will be very popular and we will be managing the tranche carefully. We’re really pleased to have worked with Accord to bring something so ground-breaking to market.”
Cate Hillis, strategic development director at Accord, said: “We have worked really closely with L&G Mortgage club in the product design process and are delighted to be in a position to launch these products. The reverse stepped tracker cushions borrowers against future base rate rises and provides intermediaries with greater product choice when reviewing the best option for their client.”
