Accord Mortgages is to cut rates across its residential mortgage product range by up to 0.25 percent after reducing them just a week ago.
The intermediary-only lender is reducing fixed-rate products by up to 0.2 percent for loans up to 75 percent loan-to-value (LTV).
Interest rates will reduce by up to 0.1 percent for loans up to 80 percent LTV. Meanwhile, loans up to 85 percent LTV and 90 percent LTV will see reductions of up to 0.15 percent and 0.25 percent, respectively.
Accord is also reducing product fees with no other incentives, by £500.
Gemma Hyland, Accord Mortgage product manager, said: “We’re delighted to be able to further reduce our mortgage rates so soon after our last reduction. There is increased optimism in the market and we’re seeing the return of greater stability in the rate outlook.
“The prospect of a potential cut to the Bank of England Base Rate in the near term is sure to be welcomed by borrowers.
“We will continue to carefully monitor market developments for further opportunities to pass on as much value as possible to our borrowers.”
Highlights of these latest changes include:
- A five-year fixed rate at 4.80 percent (was 4.95 percent) up to 75 percnet LTV for house purchase, with a £1,995 fee and free standard valuation
- A three-year fix at 5.38 percent (was 5.43 percent) up to 80 percent LTV for remortgage purposes, with a £995 fee, free remortgage legal fees and free standard valuation
- A five-year fix at 6.39 percent (was 6.64 percent) to 90 percent LTV, for house purchases including new-build flats, with a £995 fee, £250 cashback and free standard valuation.
Accord Mortgages is part of Yorkshire Building Society, one of the largest building societies in the UK.
The new mortgage deals come during a period of increased optimism in the market. The latest residential market survey from the Royal Institution of Chartered Surveyors (RICS) showed respondent expectations forecast a slightly more promising outlook for sales activity across the UK following the general election and the prospect of a fall in mortgage rates.
Over the next three months, a net balance of 20 survey respondents anticipate a recovery in residential sales up from 10 in June and the highest level of sales expectations since January 2022.
These results indicate that respondents have confidence in the newly elected Labour Government who have voiced a strong commitment to boosting the housing market, aiming to deliver 1.5 million homes over the next five years – a figure not hit since the 1960s.
Looking at price expectations over the next twelve months, a net balance of 54 of respondents believe prices will continue to rise, highlighting a key challenge for the new government as boosting housing supply in the UK will not be an easy task.
However, any boost to confidence from aspects such as the possibility of lower interest rates should in theory intensify the nationwide affordability challenge.
Tarrant Parsons, RICS senior economist, commented: “Although activity across the housing market remained subdued last month, forward-looking aspects did improve slightly.
“There are some factors emerging now that could support a recovery in the months ahead. If the Bank of England does decide that the current inflation backdrop is benign enough to start loosening monetary policy next month, this may prompt a further softening in lending rates. In addition, the recent election delivered a clear outcome, with housing pushed up the political agenda.”
