Accord Mortgages and ModaMortgages have announced significant rate cuts across various mortgage products, impacting both landlords and residential borrowers. These adjustments reflect a competitive mortgage market aimed at easing borrowing costs and enhancing affordability for clients.
What Changes Have Been Made by ModaMortgages?
ModaMortgages has repriced its limited-edition buy-to-let mortgage range, implementing reductions across both two- and five-year fixed-rate products. For five-year fixed rates at 75% loan-to-value (LTV), rates have decreased, while five-year rates at 80% LTV have also been cut. The new rates start for standard properties and small Houses in Multiple Occupation (HMOs) and Multi-Unit Freehold Blocks (MUFBs). Similarly, the two-year fixed rates at 75% LTV have also seen a reduction, with starting rates for standard properties and small HMOs and MUFBs.
What Changes Have Been Made by Accord Mortgages?
Accord Mortgages is set to refresh its residential product range, effective from July 6, 2026. This update includes rate reductions on two-year fixed products and three-year fixed rates. For those seeking longer-term stability, five-year fixed options will see reductions as well. Additionally, Accord is lowering the minimum loan size for selected products at 75% LTV, which may attract a broader range of borrowers. The lender has also relaunched products at 65% LTV and at 80% LTV.
What This Means for the Mortgage Market
These rate cuts represent a significant opportunity for landlords and residential borrowers alike. For landlords, ModaMortgages’ reductions enhance the affordability of buy-to-let investments, particularly for those operating within the HMO and MUFB sectors. The absence of application fees and free valuations further sweetens the deal for investors. On the other hand, Accord’s adjustments will benefit residential borrowers looking for competitive rates, especially those with smaller deposits who can now access lower minimum loan sizes. This could lead to increased homeownership opportunities for first-time buyers.
Frequently Asked Questions
How will the rate cuts affect my mortgage options?
The recent rate cuts by Accord and ModaMortgages provide more competitive options for both buy-to-let and residential mortgages, making it easier for borrowers to find suitable deals.
Are there any fees associated with the new mortgage products?
ModaMortgages is offering free valuations and has eliminated application fees on its limited-edition buy-to-let range, making it more cost-effective for landlords.