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Accord rolls out innovative hybrid tracker to fixed product

18th July 2011 Print

Accord Mortgages will roll out its ‘tracker to fixed' hybrid product to all lending partners on Tuesday 19th July, following its successful launch with Concordia and other selected partners earlier this year.

The innovative product has been re-priced and offers a two-year tracker period starting from BoE +1.69% followed by a three-year fixed rate period starting from 3.64%.  The deals will be available up to 85% LTV and carry a £1,995 fee.  Offset versions will be available, the deals are fully portable and overpayments of up to 10% are allowed each year.

Accord's Group Intermediary Product Manager, Steve McAvan, commented: "We developed our hybrid tracker to fixed product following feedback from our lending partners.  It is designed for borrowers who are concerned about interest rate rises but who also want to make the most of the current low base rate environment, offering a two-year tracker period followed by a competitive three-year fix.

"The beauty of the hybrid arrangement is that the pricing is set today in the current low rate environment and from the outset the borrower knows exactly what rate they will be paying after the initial tracker period.  There is also no additional arrangement fee when the time comes for the deal to switch over to the fixed rate.  This is an ideal product for borrowers wanting to take advantage of the current low base rate environment, while gaining the additional security of a competitive fixed rate guaranteed for the future."

As the tracker to fixed product is a new innovation to the intermediary market, brokers searching for it on sourcing systems will find it listed under the ‘five-year tracker' category.