Accord launches 5% deposit mortgage for first-time buyers
Accord offering 5% deposit mortgage again
Accord Mortgages is the first of the large lenders to relaunch a 5% mortgage back into the mainstream market following the withdrawal of many low deposit rates. The lender is not using the government guarantees made available by the chancellor during the last budget.
Accord is offering a five-year fixed rate at 3.99% and it is available to first-time buyers buying houses, rather than flats or new build properties. There is a £999 arrangement fee, and the maximum loan size is £500,000. The rate reverts to the lenders 4.49% standard variable rate after the fixed period.
Applicants will able to borrower 4.49x single or joint salaries and the maximum mortgage term is 40 years. To qualify at least one applicant must be a first-time buyer. Accord can accept gifted deposits and the lender is using bonus income for affordability purposes and the rate is available to the self-employed.
Aaron Strutt, product director at Trinity Financial, says: “If you are planning to purchase your first property and you want a 5% deposit mortgage, you should seriously consider whether this product is suitable. If you can raise a 10% deposit, you will get access to a much wider range of shorter-term and cheaper rates. With a 10% deposit mortgage, the rates are likely to be priced around 3%.
“We are expecting more of the lenders to start offering 5% deposit mortgages over the next few weeks and the rates may well be slightly cheaper.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation
Source: Accord Mortgages and industry press