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.
Good news! We’re enhancing our Interest Only criteria
We’re enhancing our Interest Only criteria, as part of our continued commitment to common sense lending, helping you to help more clients.
Two new repayment vehicles will be added to our list of acceptable repayment strategies, with an increase to the maximum LTV for sale of mortgaged property, and Part and Part lending. We’re also increasing the minimum equity requirement for sale of mortgaged property.
The changes will come into effect immediately.
What’s changing?
Full details of the changes including criteria are set out below:
1. Addition of acceptable repayment strategies for Interest Only clients
- Use of pension lump sum
- Sale of other UK property.
Criteria for use of pension lump sum:
- Maximum of 60% of tax-free lump sum or 15% of pension pot for defined contribution or SIPPs
- Maximum of 90% of tax-free lump sums for defined benefit schemes where the mortgage term ends after the applicant becomes 55 and is eligible to receive a pension lump sum
- Evidence required – Pension statement dated within the last 12 months.
Criteria for sale of other property:
- UK property only
- Owned by our applicant(s) in personal names with no other parties named on the property
- Maximum of 75% of equity can be utilised as a repayment strategy from the property.
2. Changes to ‘sale of mortgaged property’ criteria:
- Increase to the maximum LTV for ‘sale of mortgaged property’ from 50% to 60%
- Increase to the minimum equity requirement for ‘sale of mortgaged property’ from £200k to £250k (£300k if in London postcodes).
3. Increasing max LTV for clients using Part and Part lending
- Max LTV will rise from 75% to 85%
- Interest Only element maximum remains 75% LTV, 60% for sale of mortgage property.
What else do I need to know?
Existing clients who have repayment strategies with historical policy rules in place are still valid, should they increase their Interest Only borrowing then new criteria will be applied.
When is this change?
The changes will come into effect immediately.
Our Buy to Let New Business end dates are being extended
We’re extending our Buy to Let New Business end dates on 25 May.
What’s changing?
- Product end dates are being extended to 30 September (currently 31 August)
- All rates, fees and incentives remain unchanged
When is this change?
The current product range will be withdrawn at 8pm Wednesday 24 May and the new range will be available at 8am Thursday 25 May.