Accord Mortgages has launched a two-year discounted SVR available at 0.97% up to 60% LTV, currently the lowest on the market.
The product is available for purchase and remortgage and comes with a £1,495 fee.
Ben Merritt, mortgage manager at Accord, said:
“Accord has a reputation for offering very competitive rates, so it's pleasing we can provide this record-low deal to the intermediary market.
“This particular deal tracks our SVR. As it is competitively priced it can potentially withstand a number of rate increases before the interest rate exceeds the market average two-year fixed rate at 60% LTV.
“This may be appealing to borrowers who are keeping an eye on rates, but want the benefit of short-term low monthly repayments with the flexibility of exiting their deal at any time at a lower cost than that of our equivalent fixed deals.”
Clydesdale and Yorkshire Bank have also launched their lowest ever mortgage rate of 0.99%.
The two-year discounted standard variable rate is available at 60% LTV for loans of between £80,000 and £400,000.
The product comes with an arrangement fee for new customers of £1,449 and is available via intermediaries.
Caroline Graham, head of mortgages at Clydesdale and Yorkshire Bank, commented:
“We are offering our lowest ever mortgage rate which – if interest rates remain at their current levels – could represent a saving of over £200 per month on a £150,000 mortgage over the next two years.
“So long as people can cover their variable rate payments if rates go up then there are some excellent deals to be had. The key thing is to be informed and to work out what rate changes either way would mean for you.
“Recent research by CYBG’s digital banking brand B showed that some 71% of homeowners aren’t actually preparing for a rate rise next month. Given there is a raft of options open to homeowners, we hope that in the coming weeks awareness will increase and people will prioritise their financial fitness and fully understand what options are open to them.”
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