Remortgaging clients could see significant reductions to their monthly repayments, says Accord.

Potential reduction due to over £35 billion worth of mortgages due to mature in Autumn.

Borrowers could cash in by saving up to £231 a month when the biggest period of mortgage maturities in five years begins in September.

Data from CACI[1] shows approximately £17 billion worth of mortgages in the UK are due to mature in September and over £18 billion in October, the biggest two-month maturity period since 2012. Approximately 70% of these maturities came from the intermediary market.

Analysis by intermediary-only lender Accord, part of Yorkshire Building Society, indicates homeowners looking to remortgage could see their monthly repayments fall thanks to reduced mortgage rates and increased house prices benefiting their mortgage loan-to-value (LTV).

As an example, a London homeowner who initially borrowed 90% of a £250,000 property in July 2015 at a market average rate of 3.60%[2] could now benefit from a reduced LTV of 72% when taking out a mortgage in July 2017 after house prices in the area increased by 14.9%[3] during the two-year period. Switching to Accord’s current two-year fix of 1.40%[4] for borrowers with a 75% LTV could save £231 a month in repayments, a total of £2,772 a year.


David Robinson, National Intermediary Sales Manager, said: “Borrowers should be planning ahead long before their fixed period ends to ensure they get the best option. Brokers have an important role to play in advising and helping their clients understand whether now could be the best time to remortgage.


“It’s a good opportunity for brokers to start a conversation with anyone who is coming to the end of the fixed rate on their mortgage, to examine whether they would benefit by fixing now while market conditions are still extremely favourable to borrowers.


“All our mortgage offers are valid for six months so brokers and their clients have reassurance that they’ve secured a great rate even if market conditions change.”


To view the current Accord product range visit www.accordmortgages.com or click here.

[1] CACI’s Mortgage Market Database, comparison of annual projected mortgage maturities from February 2013, February 2014, February 2015, February 2016, and February 2017.

[2] Based on a mortgage for a property worth £250000,using a two-year fixed rate mortgage at 90% LTV at a market average rate of 3.60%, according to CACI data, available in July 2015

[3] UK HPI data published by HM Land Registry © Crown copyright 2016

[4] Based on a mortgage for a property with an initial purchase price of £250,000 assuming no change in loan size in the fixed rate period, taking Accord’s 1.40% two-year fixed rate mortgage at 75% loan-to-value, which comes with a £995 product fee and £500 cash back and a free valuation. This product goes on sale on Friday 4 August.