Our Criteria

• No payments missed in the last 12 months.
• No more than 1 missed mortgage payment within the last 24 months.
• All payments must have been made within one calendar month of the due date in order not to be classed as arrears.
• However, where DSS benefit is being received the applicant(s) must have paid 75% of the payment themselves
• In all cases, payment holidays are treated as missed payments, unless they have paid in advance.

Requirements:

• We do not accept undischarged bankruptcies
• The Bankruptcy/Sequestration must have been discharged for a minimum of 36 months. The maximum LTV in these circumstances is 90%
• The credit search must confirm that the Order is discharged or
• A copy of the discharge certificate is required
• Bankruptcies are now automatically discharged after 12 months; proof of discharge is still required.
• Sequestration is the Scottish equivalent to Bankruptcy, and is normally discharged three years after it was registered, proof of discharge is still required.

IVAs considered if:

• Satisfied over 36 months ago, with no other adverse present on the account
• The applicant(s) can provide a copy of the IVA/Trust Deed document or statement/letter produced by an Insolvency Practitioner (IP) to confirm the agreed monthly payment arrangement, satisfactory conduct and final payment date where appropriate.

We cannot accept IVAs with unsatisfactory conduct.

Customers who have had a property repossessed in the past cannot be accepted for mortgage purposes.

Application:

Prime Applicants (those currently on a Prime product) must have had their product for at least 6 months and have maintained full mortgage payments on time during the term. However, any Prime client with a product that is over 12 months old, must have made mortgage payments on time for the last 12 months.

Credit Repair applicants (those currently on a Credit Repair product) must have a minimum 24 months track record before an additional loan can be considered and all payments within the last 24 months must have been made on time and in full.

Minimum & Maximum Loan Term:

Maximum: The additional lending term cannot exceed the term remaining on the original mortgage account. Nor can the term exceed the maximum term that is available for new lending, which is 35 years.

Product Criteria:

All Additional Loans are subject to product criteria, including minimum loan size and maximum LTV.

Minimum Loan - all lending:

For lending above 75% LTV the following applies:

• Minimum loan size is £75,000
• More than one product can be taken to make up the loan provided that the total loan size is at least £75,000
• The product minimum loan size must be met -see the individual product for details.

For lending up to 75% LTV the product minimum loan applies.

Credit Referencing:

A full credit reference search is carried out for all additional lending applications. Please see the Adverse Credit Information section for further criteria.

CCJs/Court Decrees:
Only one is acceptable if the maximum value is £500, registered over 36 months ago and satisfied.

Defaults:
1 default registered within the last 36 months is acceptable subject to a maximum value of £150.

The following mortgage, secured loan or tenancy arrears are acceptable:

Prime Accounts – No missed payments in the last 12 months. No more than 1 missed mortgage payment within the last 24 months.

Credit Repair Accounts – No missed payments in the last 24 months. If any payments have been missed in the last 24 months, the additional loan application cannot be accepted.

Existing Credit Repair Customers:

Credit Repair customers can be classed as PRIME once they have made 24 consecutive monthly payments on time and in full. Once this is achieved, any historic adverse (known at time of original mortgage application) can be ignored.

Credit Repair
Accord no longer offers credit repair lending to new or existing customers. In order to apply for additional lending, existing credit repair customers now need to be classed as Prime. All mortgage payments must be paid in full and on time for the last 24 months to be classed as Prime.

Self Certification (Self-cert)
Accord no longer offers new customers the ability to self certify their income. An existing customer who originally took a self cert loan will have to meet normal lending rules for income verification before additional lending can be considered. If the customer can meet the normal lending rules for income verification, the additional loan should be on a full status product and income verification is required to support the total debt (additional loan + existing debt).

LTV over 85%
Accord’s maximum LTV is 85%. This applies to new and additional lending. Where a customer has an LTV over 85% and requires additional lending for essential repairs to the property, which if not completed would jeopardise Accord’s security, this will be considered on an individual basis.

During the product period or at the end of the product period existing customers can transfer onto a new product from Accord’s EBT range.

Any EBTs during the product period are subject to payment of the ERCs.

Where the borrower already has a full status loan, any EBT should also be on a full status product. No proof of income is required.

Prime Borrowers:

For Prime EBT applications, there must be no missed/late payments in the last 12 months payment history.  Mortgage arrears must be less than the value of 1 month’s mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.

Credit Repair Borrowers:

In order to qualify for a Prime EBT product, there must be no missed/late payments in the last 24 months payment history. Mortgage arrears must be less than the value of 1 month’s mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.

The customer will then qualify for the Credit Repair Guarantee and for our purposes is now a Prime customer.

For lending above 75% LTV the following applies:

• Minimum loan size is £75,000
• More than one product can be taken to make up the loan provided that the total loan size is at least £75,000
• The product minimum loan size must be met -see the individual product for details.

For lending up to 75% LTV the product minimum loan applies.

The minimum term remaining on the mortgage in order to take a product is dependent on the products available at the time and the term remaining on the mortgage.

For example, where a customer has 5 years remaining on their mortgage term they can choose a 2, 3 or 5 year product (if these are available), but the customer could not select a 10 year product.

No procuration fees are paid for EBTs

A revaluation is not normally required for an EBT as the LTV is calculated using an index linked valuation figure to determine product selection.

Let to Buy (LTB) applications are acceptable where the income is sufficient to support both the outstanding mortgage and the new mortgage with Accord.

New Buy to Let (BTL) applications are not accepted.

Where the property is already let out, the outstanding mortgage(s) can be ignored if self-financing and let for a minimum of 6 months from the date of application.

Self-financing: where rental income covers the mortgage payment by 150% (including any associated repayment vehicle).

To evidence this the applicant(s) must provide:

• Latest bank statements evidencing rental income for the last 6 months
• Evidence of last 12 months mortgage payments being made

If the property has not been let for 6 months or is not self-financing, the mortgage payment is treated as a monthly commitment for purposes of affordability.

Early Repayment Charges are stated for each product on the appropriate product & criteria guides. All mortgage products are portable should the applicant move house within the rate period. See the relevant product guide for details.

Accord Mortgages uses affordability to assess borrowing during our lending decision process. Please note that sourcing systems use income multiples to give a guide – which can give very different results. For an estimate of how much your client(s) can borrow, please visit our online affordability calculator.

Main Income:

• There is no minimum time in current employment.
• 100% of gross basic salary accepted.
• Employment must be permanent.
• If the applicant has two part-time jobs - 100% of the income can be accepted.

Second Job Income:

• 50% can be accepted.
• Employment must be permanent.

Retirement Income:

If the applicant is within 5 years of retirement, details of post retirement income is required. We will utilise the pension income or current salary, whichever is the lower, to calculate the maximum lending.

Allowances:

100% of the following allowances accepted:

• Car
• Shift
• Rent
• Standby
• Call out
• Weighting/Large Town
• Housing allowance
• Payments made in lieu of benefits

Bonus / Overtime:

50% of sustainable overtime & bonus subject to the cumulative figure not exceeding the basic income.

Piecework:

50% of the confirmed sustainable amount.

Commission:

50% of Sustainable Commission
Subject to the amount not exceeding basic salary. If acceptable proof of the sustainable commission amount cannot be obtained, the above will be applied only to the amount of commission which can be evidenced.

Confirmed pay increase:

Any increase must be within 3 months of application and confirmed by the employer.

Maintenance payments:

50% of maintenance payments can only be accepted where the applicant is also in receipt of other allowable income, subject to:

• Receipt of copy of Court Order or
• Payments through CSA or
• Solicitors letter confirming payments AND
• Bank statement to evidence latest payment

Payments must have a minimum of two years to run from the date of application.

Benefits:

100% of the following benefits:

• Carers allowance
• Widows pension
• Retirement pension
• War widows pension

Accord Mortgages cannot guarantee that we will lend to applicants who derive their income from the benefits listed below – applicants who receive these benefits will be assessed on a case by case basis:

• Industrial Injuries disablement allowance
• Disability Living Allowance
• Disabled Persons Tax Credit
• Carer’s Allowance

Note – Incapacity benefit and income support can only be used when this is not the applicants’ only income. The award letter will be required to evidence this income. If this is the only source of income, bank statements will also be required for the assessment of income and affordability:

• LTV under 75% - Latest bank statement showing latest salary/income credit.
• LTV over 75% - Latest bank statements showing last 3 salary/income credits.

Investment income:

Will be accepted on an individual basis. If accepted six months bank statements and/or confirmation from the stockbroker must be received as evidence.

Rental income (Buy to Let/BTL):

Normal self employed criteria applies.

Maternity income:

The applicant should confirm whether the intention is to return to work following maternity on the same hours and rate of pay or reduced hours and/or rate of pay. If the intention is not to return to work or the applicant is unable to confirm their intentions, the applicant’s income will not be used.

Probationary Period:

All probationary periods can be disregarded.

Fixed Term Contracts:

Can be accepted – see evidence of income for full details.

Salaried directors:

Salaried directors are treated for income purposes as employed applicants and the same evidence of income is required as detailed against employed applicants. In addition, three years company accounts are required (or two years plus an accountant’s projection if trading for less than three years).

Non salaried directors:

Non salaried directors are likely to derive their income from dividends. Three years accounts (or two years plus projection if trading less than three years) are required, regardless of percentage shareholding.

The average dividend figure over the last 3 years is utilised or the dividend figure for the latest year - whichever is lower. However, if the dividends have decreased year-on-year over the last 3 years – the case will be assessed on an individual basis.

The following outgoings must be declared:

• Overdrafts.
• Monthly cost of any loans.
• Monthly cost of maintenance payments.
• 3% of credit card balances at the time of application.
• Monthly cost of IVA.
• Monthly costs of childminding, nursery or school fees.
• Monthly cost of other significant outgoings: these are outgoings that the applicant/s could or would not cease paying if they needed to reduce expenditure.
• Where the applicant clearly states that outstanding loans are to be repaid only 50% of the monthly payment will be deducted from income. A condition will be applied to every offer stating the applicant’s intention to repay the loan.
• Monthly mortgage payment on properties that are about to be let or have been let for less than 6 months

If there are any concerns regarding the income Accord reserves the right to obtain further documentation.
Retirement Strategy - details of how the applicant plans to meet his/her mortgage commitments will be required if the retirement income is not sufficient to meet mortgage repayments.

Bank Statements:

Bank statements are required to support all mortgage applications to evidence income and support the affordability assessment.

Overdrafts which are identified from Bank Statements can now be accepted under normal policy, subject to higher credit score, as follows:

• Up to 75% LTV:
  total overdraft less than £1,000 is acceptable. Where overdrafts total between £1,000 and £5,000 (on bank statements) 3% of the overdraft total should be included as a deduction in the affordability calculation.
• Over 75% LTV:
  total overdrafts less than £250 are acceptable. Where an overdraft showing on bank statements is between £250 and £1,000 in any month then 3% of the highest overdraft figure should be included as a deduction in the affordability calculation.

All applications which do not fall into the above categories are outside lending policy criteria and will be referred to an underwriter.

Online Bank Statements can be used providing they contain the Applicants name, account number and bank name. Acceptance of these documents is at the underwriter’s discretion.

Employed:

Self-employed:

• The minimum trading period is 2 years.
• Accountants letter from a recognised accountant confirming turnover & net profits and applicant’s share of net profits for the last 3 years or 2 years plus a projection if the business has been established for less than 3 years.
• Trading accounts (latest 3 years or Latest 2 years + Projection) are only required where the applicant’s accountant is not recognised by Accord and must be supported by self assessment documents. See the 'recognised accounts' section for details of acceptable accountants qualifications.
  • LTV under 75% - The latest bank statement
  • LTV over 75% - The latest 3 months bank statements
• If a recognised accountant is not used: 3 years accounts are required and either the latest self-assessment documents SA302 (Tax Calculation Summary) or SA310 (Revenue Acknowledgement), plus last 6 months business bank statements are acceptable. In instances where accounts are prepared by the applicant or accounts are not available as the applicant only completes tax returns, evidence showing tax liabilities are paid to date are also required. A revenue statement showing all payments are up to date will suffice.
• For Sole Trader / Partnerships: the average net profit figure over the last 3 years is utilised or the net profit figure for the latest year - whichever is lower. However, if the net profits have decreased year-on-year over the last 3 years - the income cannot be utilised

Salaried Company Director:

Salaried directors are treated for income purposes as employed applicants and the same evidence of income is required as detailed against employed applicants. In addition, the last 2 company bank statements and three years company accounts are required (or two years plus an accountant’s projection if trading for less than three years).

Non salaried Director:

The latest 2 business bank statements and Accountant’s letter from a recognised accountant confirming turnover, net profits and applicant’s share of net profits for the last 3 years. Alternatively, 2 years plus a projection if the business has been established for less than 3 years.

Rental Income (Buy to Let/BTL):

Normal self-employed income evidence required.

Recognised accountants:

• Institute of Chartered Accountants (FCA/ACA)
• Institute of Chartered Accountants (Scotland) – (FCAS/ACAS)
• Association of Chartered Certified Accountants (ACCA/FCCA)
• Chartered Institute of Public Finance Accountants (CIPFA)
• Institute of Company Accountants (ASCA/FSCA)
• Association of Authorised Public Accountants (FAPA/AAPA)
• Association of International Accountants (FIA/AIA)
• Chartered Institute of Management Accountants (CIMA)
• Institute of Chartered Accountants of Ireland (ICAI)
• Institute of Chartered Accountants Scotland (ICAS)

Fixed Term Contracts:

The applicant must fall into one of the following:-

• At least 12 months of a contract remaining, or
• Where less than 12 months remaining (minimum original length of 12 months), a 2 year track record of income from the contract work will be required. For example:- Tax Returns and latest SA302/310

All applicants must be at least 18 years of age.

• The maximum LTV on new build flats is 75%, the maximum LTV on second hand flats is 85%.
• The maximum LTV on Interest Only is 75% - If the loan is above 75% LTV the total loan should be on a Repayment basis (capital & interest).
• See individual product details for any maximum loan / maximum LTV applicable.

For lending above 75% LTV the following applies:

• Minimum loan size is £75,000
• More than one product can be taken to make up the loan provided that the total loan size is at least £75,000
• The product minimum loan size must be met -see the individual product for details.

For lending up to 75% LTV the product minimum loan applies.

The maximum loan term is 35 years

Accord mortgages can only accept applications for the purchase or re-mortgage of an applicant’s main residence. Portability/Additional lending/Transfer of Equity applications must be secured on the customer’s main residence.

Not accepted.

Not accepted.

Not accepted.

These are acceptable subject to:

• For houses & bungalows: the maximum allowable incentive is 5% and the minimum purchase price is £75,000.
• For flats and maisonettes: where the builder’s incentive is cashback or deposit paid, this is acceptable to Accord where the incentive is deducted from the purchase price to calculate the LTV.

On all cases:

• The type of incentive(s) being provided by the builder must be confirmed on the application form and this will be communicated to the valuer prior to inspection.
• The valuer must confirm in the report that they are aware of the type of incentive being provided and the valuation represents the value of the property excluding any incentives.
• The purchase price quoted on the application form must be that which is shown in the contract. Lending is based on the purchase price or value whichever is the lower.

Not accepted.

This is acceptable if the Housing Association postpones their charge over the property in favour of the Accord charge.

These are usually acceptable to Accord but each case will be considered on its own merits - this will be based on whether a second charge will be registered and whether the applicants propose to provide some deposit from their own sources.

• No internal bathroom and W.C. or kitchen (unless to be installed prior to completion, cover by way of retention).
• Liable to be subject to clearance or compulsory purchase order.
• Freehold flats and maisonettes (unless in Scarborough with a local Solicitor acting).
• Agricultural properties with restrictive covenants.
• Isolated rural properties with restricted access and services.
• Residential property divided into bed sitting rooms.
• Pre-cast re-enforced concrete properties, designated under the Housing Act 1985, part xvi, unless they have been repaired by PRC Homes Ltd, a subsidiary of the NHBC.
• Studio Flats
• Flats with balcony access i.e. access via covered walkway.
• Maisonettes/apartments/newbuild flats where the LTV exceeds 75%
• Shared ownership
• Right to Buy
• Timeshare accommodation
• Holiday Homes
• Dwellings of totally timber construction i.e. not clad with brick, stone etc, including the log cabin/chalet type of construction
• On land/properties with agricultural ties
• Partially built property
• Buy to let (BTL)

• There are at least 3 storeys in the block of flats.
• Max 75% LTV (newbuild) and 85% (second hand flats).
• Valuer confirms constant and reliable demand (as per current).

Providing the applicant intends to install a kitchen and bathroom, it is acceptable to proceed on the basis of a retention to cover the costs of installation. If there is any doubt over the costs, the opinion of the valuer should be sought to determine the amount of retention required. In these circumstances, the valuer may recommend that the whole loan is retained.

The solicitor acting should confirm that the Granny Flat or Annex would have vacant possession upon completion.

High quality flats may be considered – these will be referred to the valuer for comments.
Studio Flats are not acceptable.

The valuer must in all cases provide a gross valuation based on the property as a whole and a net valuation exclusive of the flying freehold portion. Lending will be based on the gross valuation however if the solicitor confirms that there are insufficient rights of support and that the applicant cannot enforce the repair and maintenance of the flying freehold portion, lending will be based upon the net valuation figure provided.

Accord Mortgages will require a charge to be taken over the freehold in addition to a charge over the leasehold title.

Provided office space is less than 25% of total floor area.

Properties located in England, Wales, Scotland and Northern Ireland are acceptable.

All portability top-ups are subject to product criteria, including minimum loan size, maximum LTV, product fee and credit score.

Minimum Term:

The minimum term is dependent on the products available at the time and the term remaining. For example, where a customer has a remaining mortgage term of 5 years, the customer can choose a 2, 3 or 5 year product (if these are available) but cannot select a 10 year product.

Mortgage Payment History:

Prime Borrower – If top up is not required – the last 3 months mortgage payments must have been made and there must be no more than 2 mortgage payments currently outstanding.

Prime Borrower – If top up is required – there must be no missed payments within the last 12 months AND no more than 1 missed payment within the last 24 months.

Credit Repair Borrower – If top up is not required – the last 3 months mortgage payments must have been made and there must be no more than 2 mortgage payments currently outstanding.

Credit Repair Borrower – If top up is required – 0 missed payments in the last 24 months and would qualify for a Prime top up product subject to the whole application meeting Prime criteria.

Applications with Characteristics which we no longer allow:

Any applications falling outside our new lending criteria may be considered on an individual basis.

Early Repayment Charges (ERC):

Any ERCs must be paid by the customer and these will be refunded if the customer returns to Accord within 6 months of the date of redemption.

Where a mortgage has more than one part, each individual part is subject to its own ERC. Where a product has expired between redemption and completion of the new loan, the customer must choose a product from the current range and the ERC will still be refunded (subject to completion being within 6 months of the original redemption.

Valuations:

In all cases: A new valuation will be carried out for all portability applications, regardless of whether a top-up product is required to determine the new loan to value (LTV) of the lending. A non-refundable standard valuation fee is payable for this, and this fee will automatically be added to the mortgage account and interest charged on this daily. Borrowers can send a cheque for valuation fee at the time the valuation is instructed to avoid being charged interest on the fee.

Loan To Value (LTV)

The LTV is calculated using the total of the outstanding mortgage balance and the amount of any top up borrowing required, compared to a new valuation of the property. Any top up borrowing that takes the total lending over 75% LTV, will be agreed only on a capital and interest repayment basis for the entire top up amount.

The mortgage account must be no more than 2 months in arrears and the last 3 mortgage payments must have been made, on time and in full.

A credit search will be carried out and income verifications will be requested for the remaining customer. Income should be sufficient to cover the total debt under normal criteria.

View valuation details.

Valuation report:

A valuation report is valid for a period of three months from the date of issue.

Scottish Valuations:

A transcript is required for applications even where the valuation is received from one of Accord's panel valuers. Any report must be no more than 3 months old at the time of application.

There are currently 5 panel valuers in Scotland, these are:

• Allied Surveyors PLC
• D M Hall
• Barr Brady
• Graham & Sibbald
• J & E Shepherd

Homebuyer reports already carried out:

Where the Applicant has already had either a Homebuyers or Building Survey undertaken by a valuer of their choice, this is acceptable providing the valuer is already on our panel and the report is less than 1 month old. If the valuer is not on our panel then the report & Professional Indemnity Insurance certificate will be required together with a £135 transcript fee.

Standard valuation already carried out for another loan:

Cannot be accepted.

Security of tenure:

Properties with a large acreage of land attached must be valued on a ‘house + immediate garden only’ basis (usually up to two acres of land and assuming commensurate with property type).

Accord’s security will be the property and whole acreage of land.

Planning permission:

Properties with the benefit of land with planning permission for a separate dwelling will be valued based on what the property would be worth without the planning permission, i.e. the land as garden area only.

New Build Warranty/Certificates:

All new properties must have the benefit of a warranty e.g. NHBC, Zurich Municipal etc. Alternatively if a recognised warranty is not available, a Professional Consultant’s Certificate must be obtained, completed by a suitably qualified professional such as a Chartered Architect or Chartered Surveyor.

If the suitably qualified professional is acting on behalf of the builder, they must be willing to recognise the purchaser (applicant) as party to the contract. Regular site inspections must be undertaken and interim/completion certificates issued. The certifying professional must hold appropriate indemnity insurance cover, which must be for at least the value of the completed property and confirm new build supervision forms part of their normal day to day practice.

The maximum LTV for a new build flat/maisonette/apartment is 75%.

A revaluation is required where:

• The new LTV exceeds 50% of the latest valuation (based on the existing borrowing and the proposed additional loan) or
• The last valuation was carried out over 3 months ago (regardless of LTV) or
• The latest valuation type on the account is an External Appraisal (EA) or Desktop (AVM), regardless of LTV or the period since the previous valuation was carried out.