Accord Mortgages have released an update on their product range, the details are set out below. Accord products are available through our direct to lender mortgage club so contact us for more information on how our club can support your business.
Great news. We’ve enhanced our top slicing criteria to accept First Time Landlords, and reduced the minimum income for experienced landlords.
These improvements reflect our commitment to helping you support more BTL clients by enabling greater flexibility – allowing more of their earned income to ‘top up’ affordability.
What’s changing?
- Top slicing is now available to First Time Landlords, provided applicants have a minimum single or joint income of £75,000.
- For experienced landlords, the minimum single or joint income requirement for top slicing has been reduced to £40,000.
Who’s eligible?
- First Time Landlord applicants must not have owned a rental property that they have let out for more than 12 months at the time of application, and must have a minimum income of £75,000
- Experienced landlord applicants with a minimum income of £40,000.
What else do you need to know?
- Maximum LTV of 75%
- All applicants must reside in the same property
- The minimum income is for both single and joint applications and must exclude any rental income
- The interest coverage ratio based on rental income only must be greater than or equal to 100% and less than the minimum required ICR threshold for the application
- Subject to rental affordability and criteria.
Any exclusions?
- Not available on Let to Buy applications
- Not available for New Build properties
- Not available if application is for capital raising for unsecured debt consolidation or to cover other personal expenditure (e.g. Car Purchase, Holiday, School fees, Gift to relative).
What do you need to do?
You don’t need to do anything differently. You can continue to use the rental affordability calculator, submit the DIP and MSO will do the rest.
When is this change?
Your clients can benefit from this change immediately.