Accord Mortgages has launched a 0.97% discounted rate for mortgages between £50,000 and £3,000,000.
The super-cheap rate comes with a 4.02% discount from Accord's 4.99% standard variable rate until 31 July 2020. The initial 0.97% rate is available for purchases and remortgages.
At the end of the discounted period, the rate reverts to the society's standard variable rate. The overall cost for comparison is 4.41% APRC representative.
Accord’s 0.97% deal has a £1,495 arrangement fee, and applicants will need a 40% deposit to qualify. The lender provides a free property valuation and legal service if you are remortgaging and the mortgage can be taken on an interest-only basis if you have a valid repayment vehicle.
There are 1% early repayment charges until 31 July 2020, and up to 10% of the mortgage can be overpaid each year.
Aaron Strutt, product director at Trinity Financial, says: “More of the lenders have been increasing the price of their fixed rates over the last few weeks, so this discounted mortgage offers an incredibly low headline rate. It even undercuts the Clydesdale deal from last week.
“Even though this 0.97% deal undercuts some of the fixes by a large margin, it will almost certainly rise in line with any future Bank of England base rate changes.”
Accord Mortgages is the broker lending arm of the Yorkshire Building Society.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a discounted variable rate for two years at 0.97% and then on a variable rate of 4.99% for the remaining 23 years, would require 25 monthly repayments of £938.79 followed by 275 monthly repayments of £1,413.92. The total amount repayable would be £414,725.25 made up of the loan amount, plus interest (£162,297.75) and fees of £1,495. The overall cost for comparison is 4.41% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a low mortgage rate call Trinity Financial on 020 7016 0790