Accord Mortgages and Coventry BS to withdraw products and launch new ones
Two more major lenders, Accord Mortgages and Coventry Building Society, have announced rate changes on selected mortgage products.
Accord said it was making a number of changes to its current residential new business product range, which will be withdrawn, to be replaced by a new range.
The lender’s selected 95% loan-to-value (LTV) rates will be reduced by up to 80 basis points (bps). Its five-year Deposit Unlock products will be cut by 0.10%, while its two-year Deposit Unlock products will be increased by up to 0.12%.
Accord, the intermediary lending subsidiary of Yorkshire Building Society, will also launch two new five-year products with £2,000 cashback, available for house purchases at 90% and 95% LTV.
Learn more about Yorkshire Building Society Mortgage Rates here.
“Accord has heavily reduced its offering to those with low deposits, making the amount that such borrowers can obtain, and the monthly cost of the mortgage, much more beneficial,” commented Stephen Perkins, managing director at Yellow Brick Mortgages. “This is very welcome and encouraging news and will no doubt see other lenders look to counter, with the biggest winner being potential homebuyers and movers.
“Cashback will certainly help some buyers also with the property purchase costs, should that be a priority for the borrower. Hopefully, the forthcoming inflation data does not lead to these being pulled on the day of release over fears of a Bank of England reaction.”
Meanwhile, Coventry Building Society is closing certain products at 8pm, tomorrow, August 16, and will launch new ones at 8am on Thursday, August 17.
The mutual will withdraw three-year fixed new business rates at 90% to 95% LTV and will reduce all fixed new business rates at 65% to 80% LTV, excluding offset, in its residential range.
In the lender’s buy-to-let range, five-year fixed new business rates at 65% LTV for BTL and portfolio landlord BTL will also get rate cuts.
“Coventry Building Society’s recent rate reductions highlight the evolving dynamics in the mortgage market,” remarked Peter Stamford, director and lead adviser at Moor Mortgages. “As the UK’s second largest building society, their decision could influence other lenders.
“While this is a noteworthy development for homeowners and potential buyers, we must remain cautious and await Wednesday’s inflation data. In this fluctuating market, lenders can rapidly adjust their strategies based on prevailing conditions.”
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