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.
Accord are simplifying their rental criteria and reducing their Interest Coverage Ratio rates (ICR Rates)
From Wednesday 23rd November Accord are changing their rental calculation requirements for landlords by simplifying their ICRs and reducing their ICR Rates.
Changes are as follows:
Interest Coverage Ratios (ICRs)
- For basic rate taxpayers, the ICR will be 125%
- For higher rate taxpayers, the ICR will be 145%
Interest Coverage Ratio Rates (ICR Rates)
Accord have reduced their ICR Rates as follows:
Where the applicant is capital raising the ICR Rates will be:
- Products with an initial term of less than 5 years – 7.5% (previously 8%) or product rate +2% (whichever is higher).
- Products with an initial term of equal to, or greater than 5 years – 6.5% (previously 7%) or product rate +1% (whichever is higher).
For ‘straight switch’ re-mortgages:
- For ‘like for like’ re-mortgages the ICR Rate will be 6.5% (previously 8% for less than 5 years and 7% for products with an initial term of equal to, or greater than 5 years) or product rate +1% (whichever is higher) regardless of initial product term
Full details of Accord’s rental criteria are below:
| Product Term/Mortgage Type | |||
|
| Capital Raising < 5 Years | Capital Raising > = 5 Years | Straight Switch Remortgage |
Applicant Tax Rate | ICR | ICR Rate (Or product Rate + 2%, whichever is higher) | ICR Rate (Or product Rate + 1%, whichever is higher) | ICR Rate (Or product Rate + 1%, whichever is higher) |
Basic Rate
| 125% | 7.5% | 6.5% | 6.5% |
Higher & Additional Rate | 145% | 7.5% | 6.5% | 6.5% |
Accord recommend that brokers continue to use the rental calculator on their website to determine the maximum borrowing based on their available products before you submit a DIP. You can use this link to take you to Accord’s rental calculator.
The new ICR Rates will not apply to FMAs submitted before 8pm on Tuesday 22nd November. Brokers can contact their Accord BDM for help if they have an existing application that would benefit from the new rental criteria.
Brokers should not submit any applications between the hours of 8pm on 22nd November and 8am on 23rd November as the affordability results may not be accurate and Accord will be unable to honour any lending decisions generated during that time.
Accord are reducing rates and extending end dates across their full BTL product transfer range
Accord has good news for brokers with existing clients whose current product is due to end. From 6pm on Thursday 24th November 2022 Accord are reducing rates across their full BTL product transfer range and extending end dates to 30th April.
What’s changing?
- 60% LTV product rates reducing by up to 0.61%
- 65% LTV product rates reducing by up to 0.58%
- 75% LTV product rates reducing by up to 0.58%
- 80% LTV product rates reducing by up to 0.20%
- End dates extended to 30th April
Switching deals with Accord is an easy process. Simply select the right deal from Accords BTL product transfer range and complete an online form to request an offer. They don’t need affordability assessments, valuations or credit checks for straightforward mortgage switches.