As of tomorrow, Thursday 21st September, Accord is making changes to selected products across its residential new business range.
The current range will be withdrawn at 10pm today, Wednesday 20th September, and the new range will be available from 8am Thursday.
As part of the changes, selected products at 75% loan-to-value (LTV) will be reduced by 0.10% to 0.15%, while some products at 80% LTV will be reduced by 0.15% to 0.20%.
Selected products at 85% LTV will see a fall of 0.15% to 0.30%, with some 90% LTV products also reduced by 0.13% to 0.20%.
In addition, 95% LTV products will also see a reduction of 0.15% to 0.46%, as the lender extends all end dates to 31 January.
Nicholas Mendes, mortgage technical manager at John Charcol, said: “This is Accord’s second rate reduction in a space of week.
“These further reductions closely mirror last week’s reduction, with the exception of 95% LTV products which saw an increase of 0.23% last week and are now reducing up to 0.46%.
“While the start of the week has been slightly quieter to previous weeks in terms of rate reductions, I am sure we’ll see a busy end to the week following the inflation figures and MPC meeting rate announcement.”
Further reaction:
Stephen Perkins, managing director at Yellow Brick Mortgages:
“Accord landing another blow to their competitors in the rate war, which is especially good news for those with low deposits.
“Fast on the heels of Virgin Money’s decreases a few hours ago, the battle for market share is getting scrappy, but it’s a win-win for homeowners across the country.”
Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:
“Accord are the second lender today to reduce interest rates, which is fantastic news and much needed.
“Let’s hope the lenders’ need for new business offsets the potentially negative Inflation figures and that interest rates continue to fall.
“The housing market needs this good news, and buyers and sellers need to see interest rates falling to boost confidence.”
Justin Moy, managing director at EHF Mortgages:
“With low volumes of applications, lenders are certainly cutting rates to encourage business.
“Accord has been cutting rates quite regularly, in particular helping those with smaller deposits, which has seen the biggest reductions.
“All this is good news for borrowers and will encourage the rest of the high street lenders to follow suit.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“Let the games begin. I think the lenders that were slightly higher priced are now dramatically dropping rates to try and drum up some business before the likes of HSBC and Virgin get the lion’s share.
“There’s huge competition in the buy-to-let space currently with Paragon also reducing rates on Tuesday. It will be interesting to see how the week pans out following Wednesday’s inflation data.”
Samuel Gee, director at Manning Gee Investments:
“Accord Mortgages’ rate reductions, following Virgin’s announcement earlier today, underscores the dynamic nature of the mortgage market.
“Competition among lenders, coupled with economic uncertainties like inflation expectations, often prompt rate adjustments.
“Additionally, lenders may be realigning rates to meet their business goals.
“These rate cuts reflect the ongoing adaptability in the mortgage landscape, potentially benefiting borrowers with more attractive terms and choices.”
Peter Stamford, director and lead adviser at Moor Mortgages:
“Accord Mortgages has stepped forward, mirroring Virgin’s earlier move with their own rate reductions.
“This will hopefully encourage a bit of healthy competition and potentially open doors for borrowers to find more favourable terms.
“As lenders cautiously adjust their strategies, we spectators stand by, witnessing a slow yet purposeful shift that hints at better prospects for homeowners in the days to come.”
