Lending update from Accord
Following the re-commencement of physical valuations, Accord Mortgages has made a number of significant updates to its lending policies to help support both home buyers and owners.
As of Friday 5th June, the intermediary lender will accept:
- Residential house purchase and remortgage applications up to 90% LTV
- New Build purchases up to a maximum of 85% LTV
- Help to Buy applications up to 75% LTV
- BTL remortgages and house purchases up to 80% LTV
- A maximum loan size of £5 million for residential and £1 million for BTL
Jeremy Duncombe, Director of Intermediary Distribution at Accord Mortgages, said:
We’ve been working hard behind the scenes to return to as much of our pre-lockdown criteria as we can.
We know the market is keen to get back to some sort of normal as fast as possible and these are all positive steps. In these uncertain times, brokers need to have a competitive range of options to offer borrowers. There has never been a better time for advisers to demonstrate the value of good advice and offer reassurance. These changes, and our common sense underwriting approach, allow brokers to do just that.
At present, lending in Northern Ireland is not included in these changes, and is being looked at separately.
Applications in Scotland
Following guidance issued by UK Finance, the Law Society of Scotland and Register of Scotland, along with advice we’ve received from our own Scottish legal advisers, we are pleased to confirm that Scottish completions will continue to take place.
We have reduced our SVR by 0.50% for existing customers to 4.49% from Sunday 19 April for YBS, CBS and Accord customers and Monday 20 April for N&P customers.
We’re writing to customers to explain how any changes will affect their monthly repayments on their mortgages. Any customers affected by this decision have a choice of what they would like to do next and we’re ready to help them, should they need us.
Identification and verification
We will continue to complete an electronic ID (EID) check for all applications as per our standard policy.
For any applications that do not pass the EID check we will request copies of ID documents, but as per our standard policy, these do not need to be certified.
Whilst we would normally expect a broker to have seen and taken a copy of the original ID documents before submitting the application, given the current social distancing measures in place, we understand brokers may not have/will not be able to obtain original documents to copy.
In these circumstances, we are temporarily allowing acceptance of copied documents where the broker has not seen the original eg. where the customer has taken a copy/photo and sent that to the broker electronically.
CCJ & Defaults
Changes to Residential criteria
We've made the decision to temporarily change some of our residential criteria. These changes mean we can keep lending responsibly and give the best level of support and to our borrowers during these uncertain times.
Missed payments on Secured and Unsecured and Mortgages
- For secured loans, we'll no longer accept missed payments on a single account within the last 24 months
- For unsecured credit, we'll no longer accept consecutive missed payments within the last 24 months - including mobile phone, utility, fixed term or mail order payments
- No new defaults registered within the last 6 years
- All CCJs must be satisfied
- No new CCJ's in the last 6 years
Our Underwriters will still be taking ownership of each case submitted to us and retain their discretion to make common sense decisions, but applicants who have a history of adverse credit may have their case referred.
Valuations and Land Registry FAQs
What about product transfers and additional loans?
If you have a client whose current deal is coming to end and wants to transfer to a new product, they are able to proceed as normal. Our full range of products across all LTVs is still available.
In progress applications - What will happen about valuations during the Coronavirus (COVID-19) outbreak?
As of Wednesday 13 May, valuers are returning to work in line with the latest government advice. All new applications will be subject to a physical valuation where possible, although brokers should be aware that to ensure the safety of all those concerned, appointments will be reduced and specific guidelines adhered to, which could impact timeframes.
This also means we’re starting to work through our pipeline cases. Where possible, we are working with our valuation partners to get physical valuations booked in to replace desktop valuations, including those where an appointment has been made. You can check valuation updates through the case tracking portal on MSO.
The reinstatement of physical valuations also means that purchase applications on New Build, flats and non-standard construction will be accepted for residential cases and for BTL cases, flats and non-standard construction will be accepted.