New, reduced rates available for high LTV mortgages

Two separate lenders, Accord Mortgages and Norwich & Peterborough Building Society are offering new rates on their high loan-to-value (LTV) mortgages and have launched other new deals to appeal to a broad range of borrowers.

Accord Mortgages has reduced the rates on its 90% LTV mortgages, with a two-year fixed rate now starting at 2.49%(5.37% APRC).

A new five-year fixed is available from 3.24%(4.9% APRC) with free standard valuation, as well as £250 cashback on completion for home-buyers and free standard legal work for remortgagors.

The lender has also just launched new fee-free options at 75%, 80% and 85% LTV.

The 85% LTV mortgage is being offered at 1.99%(5.28% APRC) on a two-year fixed rate basis.

The 80% LTV is available on a two-year fixed rate of 1.84%(5.26% APRC), and on a five-year fixed rate at 2.59%(4.65% APRC). All are offered for house purchase and remortgage and come with an £845 fee.

David Robinson, national intermediary sales manager, Accord Mortgages said:

“We always try to offer brokers and borrowers a range of options and good, long-term value for money. By making these reductions and launching mortgages with different options, we are increasing the choice brokers can offer their clients. As well as the products we’ve launched today, we also have mortgages with no upfront fees for those who want to minimise the costs of moving or remortgaging.”

Norwich & Peterborough Building Society brings a 2.93%(4.3% APRC) five-year, fixed rate 90% LTV mortgage to the market, which it says is currently the lowest available.

The mortgage carries a £1,295 product fee and is available for purchase or remortgage.

Also on offer from N&P is a 3.64%(4.5% APRC) five-year, fixed rate, 90% LTV deal. The mortgage comes with a free standard valuation, and £250 cashback on completion for house purchase customers, free standard legal fees for remortgage customers and £500 cashback on completion for first-time buyers. The deal carries no arrangement fee.

Richard Barker, product manager for Norwich & Peterborough Building Society, said:

“We’re delighted to launch this mortgage, which we think will prove extremely popular with first-time buyers. As a mutual with no shareholders, we are able to look after the interests of our members by using our profits to offer competitive rates."