The policy changes are as follows:
• Accord Mortgages will continue to pay a full new business procuration fee on Prime product transfers, at new business rates, if the transfer falls within current Prime LTV categories i.e. currently up to 90% LTV.
• Selected products from within the new business range will be available to existing borrowers.
• Accord will no longer pay a procuration fee on Credit Repair EBT’s.
• Credit Repair cases transferring to Accord Prime range products will attract a procuration fee, as long as they are within current LTV categories, currently 90% LTV.
• Intermediaries will continue to be notified of their customers’ product end date. The notice period will be extended from 90 to 120 days in order to ensure that the broker has sufficient time to arrange a new mortgage.
• A preliminary letter will be sent to all Accord borrowers within 18 months of maturity in July 2008. This will illustrate the SVR payment and give an indication of possible payment increases, thus giving borrowers time to plan for payment changes.
• In accordance with its approach to Treating Customers Fairly, Accord will contact all customers to advise of payment changes seven weeks before maturity.
• If no evidence is seen of an intermediary issuing a KFI offer at the seven-week trigger point, Accord will contact the borrower directly to ensure that continuing mortgage facilities are in place.
• EBT product options will be made available where there are existing customers that fall in to a business category where Accord is no longer lending i.e. 90%+.
• The minimum EBT amount will be reduced to £10k from £30k.
Charles Canning, md of Accord, concluded: “The changes that we are making have two points of focus. They will reinforce the fact that our focus is on prime residential lending and that we continue to have a presence in the credit repair market. When we launched the credit repair guarantee it was to give borrowers an incentive to rehabilitate their credit record. This has helped to position Accord as a responsible lender whose approach to Treating Customers Fairly is at the forefront of its agenda. It has proved to be good for customers as they are able to acquire a prime product at the end of their product term and it has been good for intermediaries as we will pay a procuration fee on prime products at current new business levels.”
