Accord unveils cheap two-year discount range

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Accord has launched seven aggressively-priced two-year discounted standard variable rate loans.

The lender claims the new products undercut existing average two-year fixed rates by up to 0.81 per cent.

LTVs from 60 to 95 per cent are available. Rates offer discounts to Accord’s SVR, currently 4.99 per cent.

The new range is available from 12 April.

At 90 per cent LTV a borrower can get a 1.64 per cent rate. This is 0.81 per cent below the average two-year fixed rate at the same LTV, according to Moneyfacts.

At 75 per cent LTV a borrower can get a 1.29 per cent rate from Accord.

The new loans have a £495 product fee and a free standard valuation.

The exception is Accord’s 0.97 per cent rate at 60 per cent LTV, which has a £1,495 fee.

All the loans are available for house purchase and remortgage except a 2.99 per cent option at 95 per cent LTV which is for house purchases only.

Borrowers can redeem at any point in the discount period and incur a 1 per cent early repayment charge.

Accord mortgage manager Ben Merritt says: “Whilst the rate on these types of mortgages can go up as well as down, with our highly competitive range customers could potentially withstand a number of rate increases before their rate becomes higher than the market average, which could mean customers pay less even if rates do go above that of a fixed rate offering.”

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