On its prime mortgage range, the maximum loan-to-value (LTV) on properties above £500,000 has been increased from 75 per cent to 85 per cent. Accord will also offer 90 per cent of the future sale of a property as a repayment vehicle.
Other changes include considering any Stamp Duty, buildings deposit and legal fees for builders deposits of up to 5 per cent.
Linda Will, managing director at Accord, said: “Much of these improvements have come off the back of our focus groups and we feel we have listened and responded to what our brokers were saying. This package of amendments might not seem much on their own but together they should make life easier for a lot of brokers.”
On Accord’s non-conforming range, LTV on heavy adverse products has been increased from 75 per cent to 85 per cent. For customers with other rental property, the lender will consider their financial viability after six months rather than a year.
Credit repair changes will mean no reference checks with private landlords and in the near future, Accord will accept 100 per cent of a borrower’s overtime or bonus income rather than only 50 per cent.
Will added: “Most people now have bonuses and do overtime as part of their main income, so not to include them when considering a client is outdated.”
Peter O’Donovan, mortgage manager at Bestinvest, welcomed the enhancements. He said: “All those changes seem like very positive moves in the market. The criteria will help making mortgages easier for people to obtain. Lets just hope it brings in the rates to make the ranges really competitive.”
