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Buy to let: Accord pares back rates while Foundation ups LTV

Accord Buy To Let is to reduce rates by up to 0.35% on three quarters of its mortgage range and Foundation Home Loans has increased the maximum LTV on its standard and first-time landlord buy to let products.

Accord will also cut its £1,995 product fee to £1,495 on certain options, and selected mortgages which previously had a £450 fee are now fee free. 

The changes come in on Monday 18 December. Accord will launch a 1.89% two-year fixed rate mortgage at 65% LTV with a £1,495 fee and free standard valuation. Those with a 25% deposit can access a 2.24% three-year fix. It has a £995 fee and free standard valuation. The lender also has a 2.79% three-year fix at 65% LTV with no product fee and free standard valuation. Both mortgages are available for house purchase and remortgage. 

Accord has also launched a competitive five-year fix at 2.84% for landlords with a 35% deposit. This has a £950 product fee. Landlords purchasing a new property will receive free standard valuation and £500 cashback. Remortgagers can choose between this or free standard valuation and legal fees. 

Accord Buy To Let commercial manager Chris Maggs says: “It’s the season of goodwill so we hope the changes we’ve made to our products will be well received by landlords at the end of what has been a turbulent year. 

 “We’ve tweaked our range based on feedback from both brokers and landlords. In particular, we’ve seen a shift in appetite for five-year fixes as landlords look to secure a great rate for longer.” 

Meanwhile specialist lender Foundation Home Loans has increased the maximum LTV on its standard and first-time landlord buy-to-let products. 

From today, up to 80% LTV will be available on the products, up by 7%, and come with a choice of fee: either a 2% arrangement fee or a flat £1,995. Rates for the products start from 3.85%. 

Foundation Home Loans director of marketing Jeff Knight said: “We recently undertook a market test through some of our key distribution partners in order to test demand. Following the successful pilot, we have chosen to increase our LTVs across our Standard and First Time Landlord products – available to a much wider distribution. 

“As a growing and ambitious company, we are always looking for ways to enhance our proposition to landlords, both non-portfolio and portfolio landlords. Our rates are also the same for both limited companies and individuals.” 

These changes were announced in the week the Bank of England's Monetary Policy Committee voted unanimously to maintain Bank Rate at 0.50%. The Committee maintains that if the economy follows its predicted path, "further modest increases in Bank Rate would be warranted over the next few years". 

In its minutes, the MPC said that "although it is too early to arrive at a comprehensive view of the effect of November’s rise in Bank Rate on the economy, the impact on interest rates faced by households and firms has been consistent with previous experience". 

It added that developments regarding the United Kingdom’s withdrawal from the European Union – and in particular the reaction of households, businesses and asset prices to them – remain the most significant influence on, and source of uncertainty about, the economic outlook. 


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