Accord removes all ERCs from new discount mortgage range

House-Market-Mortgage-Property-700.pngAccord has launched a new range of penalty-free discount mortgages for residential borrowers, linked to its SVR.

Rates start from just 1.29 per cent for a two-year discounted deal at 65 per cent LTV. This deal comes with a £495 fee.

Unusually though there are no ERC’s to pay, even within the discounted period.

This majority of products in this new mortgage range are available for both purchases and remortgages.

The intermediary-only lender, which is part of the Yorkshire Building Society, says these new products were launched following feedback from brokers.

Brokers complained that that many customers were avoiding discounted SVR mortgages, despite the fact that they are more cost effective that fixed rates deals. This is because they were concerned the SVR could be hiked at any time.

Accord’s mortgage manager Ben Merritt says these ERC-free deals gives customers the flexibility to repay the loan or transfer it to a fixed rate deal at any time, without penalty.

Other mortgages in the range include a  two-year discounted deal, with a current pay rate of 1.74 per cent, up to 90 per cent LTV, or 2.99 per cent up to 95 per cent LTV.

Both again have a £495 fee and a free standard valuation.

Merritt adds: “Over the past few months we’ve seen a lot of demand for discounted SVR mortgages, perhaps because the low rates mean customers could potentially absorb a number of rate increases before it would have been better to have opted for a fixed rate.”

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