Accord is targeting company directors of plc’s and other high earners who need to relocate or remortgage quickly.
Iain Smith, sales director at Accord, said: “We aim to ensure that brokers with this profile of client receive an elite service. Due to the demands upon these individuals their time is usually very precious and arrangements for organising the house move, including the mortgage, tend to be very last minute. We are looking to turn these cases around within five working days.”
Accord is offering the loan at a 1.3 per cent discount from its SVR for three years and is willing to lend up to a maximum 65 per cent loan-to-value. The arrangement fee is 0.1 per cent with capital repayments of up to 10 per cent of the loan each year.
NatWest, Royal Bank of Scotland (RBS), Cheltenham & Gloucester and Abbey all lend over £400,000-plus with Halifax raising its maximum loan level to £2 million last month.
Paul Fincham, spokesman for the Halifax, said the move was a response to both increased consumer demand and market competition between lenders.
Ray Boulger, senior technical manager at Charcol, suggested that loans of £350,000 and over could amount to up to 25 per cent of the entire loan market in volume.
But he said: “The pricing is not good enough on this product to see a lot of volume with NatWest and RBS offering keener rates. But if Accord, who have built up a good reputation on service, can guarantee that turnaround it will put them at the top of the tree.”
Boulger added: “What is interesting though is the challenge this throws down to other lenders like the Alliance & Leicester, and the Coventry and Portman building societies which still lend maximum loan sizes of half a million.”
