In the latest example of its commitment to common-sense lending, Accord Mortgages is enhancing its affordability assessment, lowering minimum income requirements to £50,000 (was £60,000) for those who want to borrow more than 4.49-times their income (loan-to-income – LTI).
The change, taking effect from today (Wednesday 4 September), applies to mortgages up to 90% loan-to-value (LTV) including new build houses and flats (for which the maximum LTV was previously 85%). It will allow borrowers bringing in a household income of £50,000 to borrow up to five times their income; with the exception of its Boost LTI product, for which the earning threshold for borrowing 5.5 times LTI, up to 90% LTV, will remain at £60,000.
The intermediary-only lender is also increasing the maximum LTV for new build home purchases using its Boost LTI product, from 85% LTV to 90%.
Accord has confirmed that - reinforcing its commitment to responsible lending – applications must continue to meet standard lending policy and affordability requirements.
Nicola Alvarez, senior manager, proposition development, for Accord, said: “This change - which is the latest example of Accord’s common-sense lending - will help brokers in their vital role to find solutions for even more clients, recognising the affordability challenges faced by so many, providing them with increased flexibility to achieve their borrowing goals in today’s challenging mortgage market.”
