Accord mortgages is set to introduce changes to its buy-to-let mortgage products on Friday the 4th of August 2023. The upcoming update includes adjustments to both fixed rates and new products to enhance their offerings to people looking for buy-to-let financing through a mortgage broker like Oportfolio. The changes aim to accommodate the evolving demands of the property market while providing competitive rates for landlords in a tough buy-to-let market.
What Are The Changes To Buy-To-Let Mortgage Products?
As part of an update sent to mortgage brokers this morning, Accord is introducing increases in fixed rates by up to 0.10% on select products based on loan to value. The changes are as follows:
For house purchase products with a 60% LTV and a £495 fee, the rate will increase by 0.05%. Similarly, 65% LTV products with a £495 fee will experience a rise in rates by 0.01% to 0.10%. Borrowers looking to re-mortgage at 65% LTV with a £995 fee will see an increase in rates by 0.02% to 0.04%. For those borrowers potentially looking at higher LTV products, the 75% LTV products with a £495 fee will see a rise in rates by 0.05% to 0.09%, and re-mortgage products at 75% LTV with a £995 fee will increase by 0.02% to 0.04%.
Buy-To-Let Rate Reductions From Accord
On the other hand, Accord is also making reductions in fixed rate products by up to 0.84% on certain buy-to-let products. The changes include:
Selected 2-year fixed rate products will be reduced by 0.02% to 0.19%, where not already mentioned in the rate increases. For the 3-year selected products, the rates will be reduced by 0.02% to 0.20%. The most significant rate reductions are for the 5-year selected products, with a substantial decrease of 0.28% to 0.84%.
New Product Offerings
Additionally, Accord is introducing new products to their buy-to-let mortgage range, aiming to potentially cater to a wider range of customers. The newly available products are as follows:
- 2-year fixed rates with no fee, starting at 6.80%
- 2-year fixed rates with a £1,495 fee, starting at 6.43%
Both of these products come with incentives for borrowers. Customers looking for House Purchase will be eligible for £500 Cashback, while those to re-mortgage can choose between £250 Cashback or free remortgage legal services.
Accord is also introducing two new fixed-rate options at 80% LTV with a £3,495 fee. Borrowers can opt for either a 2-year fixed rate starting at 6.42% or a 5-year fixed rate starting at 5.91%. These products are designed to cater to investors with a higher LTV requirement, offering attractive rates and flexibility. Additionally, Accord is offering tracker products with a £1,995 fee, starting at 0.22% above the Bank of England base rate, providing variable rate options for those who prefer this type of mortgage.
Speak To a Buy-To-Let Mortgage Broker
These days being a buy-to-let investor can be tricky as rates are high, the running costs of properties has increased, and making your investment profitable can be a difficult task. These new updates and new products from Accord are attractive to both new and seasoned landlords looking to make the most of their property investments. But whether you are an expert or a beginner, you should always consult with a mortgage advisor to understand the implications of these changes. At Oportfolio we are experts in buy-to-let mortgages and can help you to navigate the difficult rental market. Call or email our team of brokers today for a free initial mortgage consultation. We are here to help.