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! Accord can now accept more income types for affordability assessments
What’s changing?
To help brokers help more clients with differing circumstances, Accord is increasing flexibility on affordability assessments by accepting additional income types and some benefits. This includes zero hours contracts for specific keyworkers, Limited company directors’ salary plus their share of net profits, some benefit types and annuities.
When is this change?
They are making this change at 10am on Wednesday 30 August 2023.
The additional income types and benefits they will accept are as follows, along with criteria details:
Zero-Hour contracts for specific keyworkers:
- NHS Bank nurses and locums
- Non-NHS Bank nurses
- Care Home Workers
- Supermarket Workers
- HGV Drivers
- Retained / On-Call Firefighters
- Armed Forces Reserves
- Supply Teachers
Criteria:
- 60% of the income can be used for affordability
- Evidence required – 12 months evidence of sustainable earning on a zero-hour contract basis can be supplied via a P60, copy of the contract and 3 months of payslips to assess sustainability
Limited company director salary plus share of net profit where the shareholding is greater than 50%
- If a Limited company director has more than 50% shareholding, they will consider the use of directors’ salary plus their share of net profits (minus corporation tax) as an alternative to directors’ salary and dividends
- For a joint mortgage application where both applicants are company directors for the same company and individually have less than 50% shareholding but together equal >50% they are able to use share of net profits
Criteria:
- 100% of the income can be used for affordability
- Declare net profits minus corporation tax for company directors only
- Evidence required – as per standard self-employed criteria
5 new benefit types are:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA) including Child Disability Payment (CDP – Scotland)
- Industrial Injury Disablement Benefit (IIDB)
- Carers Allowance
- NI Contributions based Employment Support Allowance (ESA)
Criteria:
- 60% of the income can be used for affordability
- Must be in receipt of other income to use and the benefit income cannot exceed main income
- Evidence required – Award letter for Employment Support Allowance and 3 months bank statements for all other benefits
Annuities as a pension income
- For customers who are already in receipt of an annuity they will treat this the same as pension income
Criteria:
- 100% of the income can be used for affordability
- Evidence required – Latest annuity statement dated within the last 12 months, P60 or payslip
The application forms and accountant’s reference on the website have been updated, previous versions should not be used
What’s staying the same?
All other lending policy remains unchanged.
When is this change?
Accord is making this change at 10am on Wednesday 30 August 2023