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.
We’re making changes to our Residential and Buy to Let New Business product ranges
Applies to: Residential and Buy to Let New Business
We appreciate the market is volatile at present, and whilst not always possible, we will endeavour to give you at least 24 hours’ notice of any upcoming changes.
On Thursday 23 October, we’re making changes to our Residential and Buy to Let New Business product ranges. The current ranges will be withdrawn at 10pm on Wednesday 22 October and the new ranges will be available at 8am on Thursday 23 October.
What’s changing?
Residential New Business
- All fixed rates up to 90% LTV (exc. 10 year) reduced by 0.07%
- 10 Year fixed rate reduced by 0.16%
- 2 Year and 3 Year 95% LTV fixed rates reduced by 0.06%
- New first time buyer exclusive products with additional £500 cashback
Residential New Business Product Finder
Buy to Let New Business
- 2 Year 60%, 65% and 75% LTV decreasing by 0.03%
- 3 Year 60%, 65% and 75% LTV decreasing by 0.03%
- 5 Year 60%, 65% and 75% LTV decreasing by 0.04%
Buy to Let New Business Product Finder
What else do you need to know?
Please note that a full mortgage application must be submitted by the time of withdrawal to secure a new lending product. If you are yet to submit a DIP, please do so as soon as possible as any referrals will only be looked at during normal office hours.
For Buy to Let applications, the product selected will impact the maximum loan we can offer. As a product cannot be selected at DIP stage, it is important that you use our rental calculator which can be found here as this allows you to input the details of the product required and provide you with a more accurate maximum lending amount. The actual maximum lending available will be determined at the point you submit a Full Mortgage Application.
Speeding things up for you
We know it’s very busy at the moment – to find the information you need in a hurry (including our criteria) our website and chatbot are here to help you get answers quickly and easily.
You can also access MSO for real time updates on existing cases, freeing up time to help you, help more clients.
Good news, Accord have reduced their BTL ICR rates improving affordability
Applies to: Accord Buy to Let
Dear All,
From today, Accord have changed some important BTL criteria, helping more landlord clients.
- Their rental calculation has been improved by reducing ICR Rates
- The 10% rental income uplift for remortgage down valuations will no longer apply as valuers now use actual rental figures for more accurate assessments.
BTL ICR Rates – what’s changed?
Interest Coverage Ratio Rates (ICR Rates) reductions
For a Purchase or Remortgage with capital raising:
- Product term >= 5 Years – The higher of 4.75% or product rate +0.50% (previously product rate +1%)
For straight switch Remortgage applications:
- Product term <5 years – The higher of 4.75% (previously 5.5%) or product rate +0.70% (previously product rate +1%)
- Product term >= 5 years – The higher of 4.75% or product rate +0.35% (previously product rate +1%)
What’s staying the same?
- The ICR Rates for Purchase or Remortgage with capital raising where the product term is <5 Years remains unchanged – The higher of 5.5% or product rate +2%
Interest Coverage Ratios (ICRs) remain unchanged:
- 125% for Basic Rate taxpayers
- 145% for Higher and Additional rate taxpayers
Remortgage 10% down valuation discretion – what’s changed?
In August 2022, Accord introduced a change allowing underwriters to apply a 10% uplift to rental income for remortgage cases where a down valuation was received. This uplift has been removed as valuers now have access to actual rent received, improving accuracy.