Accord Mortgages has launched a new financing package, with a two-year fixed interest rate.

The intermediary lender of Yorkshire Building Society said that although the fee of 2.5 per cent is relatively high, the 5.49 per cent interest rate allows for low monthly repayments.

Earlier this month the lender launched a new range of products, dubbed Prime, which this deal is being added to.

Strategic development director Cate Hillis described the fee as "comparatively high" but said it could be added to loan repayments.

"With increasing food and utility bills, as well as the payment shock facing many borrowers coming to the end of their current fixed rate, this could be a genuine alternative."

Overpayments up to ten per cent of the loan's value are allowed each year.

Last week Yorkshire Building Society itself launched a new mortgage, with a fixed-rate of 4.99 per cent for the first two years and a three per cent fee.

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