All prime borrowers will now benefit from increased income multiples of up to five times on long-term fixed rates and are applied to each borrower individually, based on their salary.
Linda Will, managing director of Accord Mortgages, said the move could benefit many customers. “This improvement could help a whole range of borrowers, from first-time buyers struggling to make their first purchase, to home movers looking to get that special property,” she said.
Will added the move was made to bring a period of stability to the market, and give consumers peace of mind. She said: “Taking a longer-term fix introduces stability in terms of affordability which, in our model, more than justifies the enhanced multiples.”
Products benefiting from the enhancements include its 4.79 and 4.94 per cent fixes until March 2011, fee-assist and higher lending charge free 4.95 per cent fixed until January 2016 and its 4.99 per cent offset, fixed until March 2011. Accord’s 5.09 per cent professional offset fixed until March 2011 and its 5.54 per cent professional 100 per cent-plus offset fixed until 2011 are also included.
Kim Barrett, proprietor at KS Barrett & Associates, admitted the move made good sense and agreed the product rates on offer were reasonable. He said: “Accord has made a sensible move because if you are lending on higher multiples then it makes sense to tie the client into a longer-term fixed rate. This way it allows them to budget for as long as possible.”
