Accord Mortgages announce further rate reductions

SWAP rates have been reducing recently, which is good news across the board. I think we will see more lenders reduce this week. The reductions will still be tentative in my opinion, as the economic outlook remains fragile. If the positive trends continue, we will see more lenders returning to the high 4% rates for low loan-to-value cases in the not-too-distant future. This will be for 5-year fixed rates initially, but it would be a positive milestone to hit.

This is great news on the rate reductions, particularly on the higher loan-to-value deals. Lower deposit mortgages are key to boosting the stalling first-time buyer market and making the rates on these increasingly attractive is great news. With the demise of Help-to-Buy, 95% LTV mortgages are key to both upsizers and first-time buyers.

These are some substantial changes to the Accord range, which is particularly helpful for those who have a small deposit, with reductions of up to 0.45% suggesting that the outlook on rates is looking more positive by the day. Most lenders are grouping around similar pricing points on both short- and long-term fixed deals. The question is how long, now, before we drop below 5% on a 5-year fixed deal?

The mortgage rate avalanche continues to gain momentum as Accord announces another round of reductions. Hopefully, the Bank of England will pause on its rate increases later this month in line with what has been hinted at by Andrew Bailey.

Accord's drop in mortgage rates is a welcome sign that the markets have already factored in any further base rate increases. Current SWAP rate trends reflect this reality. We hope the same positive outlook will prevail in the buy-to-let sector as well, given most landlords have been hammered by this government's anti-landlord policies and an unprecedented 5000%+ increase in interest rates over the last 18-20 months.