Accord cuts rate on £5k Deposit Mortgage amid product changes

The majority of the cuts are effective from Tuesday 27 August and will apply to products up to 85% LTV – with two-year deals reducing by as much as 0.35% and three-year rates discounted by up to 0.25%.

Five-year products to 85% LTV will reduce by up to 0.20% and on ten-year products the reduction will be up to 0.20% lower, up to 85% LTV.

For those with a smaller deposit, rates will come down by up to 0.15% at 90 and 95% LTV.

The rate on the £5K Deposit Mortgage – launched in March, which enables first-time buyers with just a £5,000 deposit to purchase a property valued up to £500,000, will also be cut by 0.15% to 6.24% (was 6.39%) for a five-year fix.

Product end dates are also being extended until 30 November.

Gemma Hyland, mortgage product manager for Accord, said:

“We’re very pleased to be able to further reduce rates throughout our range, so that a variety of borrowers – including those looking to get onto the property ladder for the very first time - can benefit.

“As usual, we’ll continue to monitor market trends, reacting wherever we can to pass on added value to borrowers.”