Accord offering 1.29% two-year discounted rate for mortgages between £30,000 and £3 million

by Aaron Strutt

Sep 17 2018

Accord is offering one of the lowest rates for mortgages between £30,000 and £3 million. 

The broker-only 1.29% rate has a 3.70% discount from its standard variable rate until 30 November 2020. At the end of this period, it reverts to the lender's variable rate currently of 4.25% for three years and then 4.99%. The overall cost for comparison is 4.32% APRC representative.

The mortgage has a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify. There are no early repayment charges and borrowers are free to switch to a fixed rate at any time.

Accord's rate undercuts many of the fixed and tracker rates across the market and is popular because it is available for larger loans with greater flexibility. The most competitively priced two-year fixes are around 0.15% more expensive, and the five-year fixes are 0.55% higher.

Aaron Strutt, product director at Trinity Financial, says: "Tracker rates are not as popular as they used to be but they still have their place in the market.

"According to research by Experian around 10% of borrowers used its system to search for variable rates which is down from 38% in July."

Representative example: A mortgage of £250,000 payable over 25 years, initially on a 1.29% discounted rate until 30/11/2020 and then on a variable rate of 4.25% for 36 months and then 4.99% for the remaining 20 years, would require 24 monthly repayments of £975.36 followed by, 36 monthly repayments of £1,323.40 and 240 monthly repayments of £1,409.24. The total amount repayable would be £411,391.14 made up of the loan amount, plus interest (£159,268.64) and fees of £1,495. The overall cost for comparison is 4.32% APRC representative.

Call Trinity FInancial on 020 7016 0790 to secure a low mortgage rate