Accord Offset Mortgage
The Accord offset mortgage allows borrowers to link their mortgage account and an offset savings account so they pay less interest on the mortgage balance. The offset savings account is a postal account offered through Yorkshire Building Society. Up to three savings accounts can be linked to the Accord offset mortgage.
With the Accord offset mortgage there is no need to open a current account with the offset mortgage provider, nor is it necessary to pay your salary into the account. Mortgage holders can choose to pay the amount they would have paid if the savings were not being used to reduce the mortgage interest, which means that the mortgage is likely to be repaid sooner.
They can also choose to reduce their monthly payments as the balance owed reduces, though this will not reduce the mortgage term. Underpayments and payment holidays could increase the mortgage term and/or the total amount payable. The Accord offset mortgage is available for purchases and remortgages and has a variety of flexible features. These include overpayment, underpayment, payment holidays and daily calculation of interest.
The Accord offset mortgage for prime customers is available with a three year fixed rate of 6.04 per cent until 2011. After that it reverts to the standard variable rate, which is 2 per cent above the Bank of England base rate. This Accord offset mortgage is available up to 75 per cent loan to value, with an arrangement fee of £995. Early repayment charges apply during the fixed rate period. There are a total of 15 offset mortgage schemes offered from Accord mortgages covering fixed, tracker and variable deals.
Professional Offset Mortgages
There are also a number of Accord offset mortgage deals for fully qualified and practising medical doctors, dentists, solicitors, accountants and vets. These are available up to 95 per cent loan to value, with arrangement fees from £0 to £995. Some feature £250 cashback and the higher lending charge is paid by Accord. These Accord offset mortgage deals include:
- a three year fixed rate offset at 6.04 per cent until 2011
- a five year offset mortgage fixed at 6.04% until 2013
- a five year tracker offset mortgage at 1.0 per cent above the base rate.
Accord mortgages vary their interest rates according to the loan to value with better priced mortgages being offered at 75% loan to value than at 95% loan to value. APR's on deals vary from 7.6% to 7.8%. Accord mortgages do not offer incentives such as "cash back" as all their deals include valuation and legal fees to pay.
