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. From today, we’ve made two criteria changes to help you support more clients:
- Increased LTV available for single or joint applications where no applicant has indefinite leave to remain (commonly referred to as foreign national criteria)
- Universal Credit is now accepted as an income type for affordability assessments.
These positive changes reflect our commitment to common sense lending and make it easier for you to support more clients – whether they’re buying their first home, moving up the property ladder, need additional lending or remortgaging
What’s changed?
Indefinite Leave to remain (ILR)
The maximum LTV for joint or single applications has increased to 90% where no applicant has indefinite leave to remain.
- At least 1 applicant must have a minimum income of £50,000
- Where no applicants have ILR and they don’t meet the minimum income rule, we will continue to lend up to 75% LTV
- On joint applications, where 1 applicant has ILR, we will continue to lend up to 95% LTV as normal
- Portability and variations for clients who meet this criteria will follow standard lending rules
- All other criteria, affordability and scorecard requirements must be met.
And you don’t need to do anything differently. Simply visit our website here to use our online calculators or submit your DIP as normal – MSO will do the rest.
Universal Credit
Universal Credit is now accepted as an income type for affordability assessments.
We will accept 60% of Universal Credit from the latest Award Letter, excluding the following elements:
- Housing Allowance
- Service Charge
- Child Element where the child is 11 years or older
- Universal Credit is accepted if at least one applicant has earned income
- The benefit amount used cannot exceed 100% of the earned income on the application
- Evidence required: Latest Award Letter and the last 3 months bank statements
- All existing affordability assessments, lending policies and criteria will remain unchanged.
To find out more, view our criteria here.