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Mortgage Lending Criteria

Mortgage Lending Criteria - Accord

Accord


Notes: The following information is general and may not apply to your mortgage. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Mortgages

Advances
Upto 3,000,000 (Remortgage only LTV 75)

Notes
Mortgage is Portable, Mortgage is Flexible, Under payments allowed, 10% Overpayments allowed per year.
You can keep this mortgage should you move to a new property. Conditions apply. Full details are available on request.


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



All House Purchase products are available for Portability Top-up, subject to: A minimum loan of 3,000, top-ups below 50,000 can only be taken on products without incentives, where applicable product fees are payable regardless of loan size. Please refer to Lender for lending criteria and a KFI.

Payment Holidays Allowed. With prior agreement, payment holidays may be allowed at any time providing you have previously built up enough credit through overpayments.

If your remortgage includes free Legal Services; we will pay the legal costs as agreed with our legal advisers in completing the mortgage. These costs will be limited to their fees and expenses.

If remortgage includes free valuation we will pay the standard valuation fee up to a maximum of 695. However this payment excludes:
-any second or subsequent valuations; and
- the cost of any homebuyers surveys or building (structural) surveys where such cost exceeds the cost of the standard valuation fee.

You are able to make overpayments to the sum of 10% of the loan amount on any part of this mortgage in each 12 month period. Overpayments which exceed this will incur an early repayment charge of the percentage specified in Section 10 on the amount of the excess.
If you make an overpayment or lump sum payment then the amount you owe, and so the amount of interest you pay, is reduced immediately. This provides you with benefit immediately.

With prior agreement, reduced monthly payments may be allowed at any time providing you have previously built up enough credit through overpayments.

This mortgage includes a facility for additional secured borrowing. You may be able to apply for additional borrowing following completion of your mortgage, subject to certain conditions being met. This additional borrowing must be repaid in full if your total borrowing is repaid in full. Further information is available on request from Accord.
THIS WILL INCREASE THE AMOUNT OF BORROWING SECURED ON YOUR HOME.

Restrictions apply. Full details are available in factsheet.

Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment No
PEP No
Pension No
Interest only (no RV) No
With Profits No
Unit Linked No
ISA No
Split Repayment No

Fees


Arrangement : varies
Booking : varies

Early Repayment Charges
Varies, 10% capital repayments allowed per year without penalty

Higher Lending
None

Valuation
Basic:
upto 100,000 - 145
upto 150,000 - 175
upto 200,000 - 205
upto 250,000 - 235
upto 300,000 - 270
upto 400,000 - 330
upto 500,000 - 390
upto 600,000 - 450
upto 700,000 - 515
upto 800,000 - 575
upto 900,000 - 635
upto 1,000,000 - 695
upto 1,200,000 - 820
upto 1,400,000 - 940
upto 1,600,000 - 1065
upto 1,800,000 - 1185
upto 2,000,000 - 1310
upto 2,200,000 - 1430
upto 2,400,000 - 1555
upto 2,600,000 - 1675
upto 2,800,000 - 1800
upto 3,000,000 - 1920
upto 3,500,000 - 2045
upto 4,000,000 - 2170
upto 4,500,000 - 2290
upto 5,000,000 - 2415

Homebuyers:
upto 100,000 - 325
upto 150,000 - 360
upto 200,000 - 410
upto 250,000 - 460
upto 300,000 - 525
upto 350,000 - 575
upto 400,000 - 625
upto 450,000 - 675
upto 500,000 - 730
upto 550,000 - 780
upto 600,000 - 830
upto 650,000 - 880
upto 700,000 - 930
upto 750,000 - 985
upto 800,000 - 1035
upto 850,000 - 1085
upto 900,000 - 1135
upto 950,000 - 1185
upto 1,000,000 - 1240
upto 1,200,000 - 1440
upto 1,400,000 - 1645
upto 1,600,000 - 1850
upto 1,800,000 - 2055
upto 2,000,000 - 2260
upto 2,200,000 - 2465
upto 2,400,000 - 2670
upto 2,600,000 - 2870
upto 2,800,000 - 3075
upto 3,000,000 - 3280
upto 3,500,000 - 3790
upto 4,000,000 - 4300
upto 4,500,000 - 4815
upto 5,000,000 - 5325

All valuation fees include VAT and an administration charge of 90.

Valuation fees over 2 million please refer to lender.

Mortgage Fee deferred until redemption of the loan.

Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Mortgage Fee - 90.00 Payable on redemption.
Mortgage Application Processing Fee - 130.00 Payable upfront.

Acceptable Property Types



Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop No
Maisonette Yes
Studio Flat No
Flying Freehold Yes
Thatched Refer
Timber Framed No
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Not Accepted
New Build acceptable. Holiday homes are only available through remortgaging and capital raising against main residence or through an additional loan where the existing mortgage is held with the Lender.

Second homes - Lending on pied-a-terre not accepted.

Lender will not lend on flats in blocks exceeding 6 storeys.

Builders offer incentives to purchasers in the form of allowances; cashbacks and deposit paid schemes. These are acceptable to Accord Mortgages subject to:
For Houses & Bungalows: the maximum allowable incentive is 5%. The total of all incentives should never exceed 5%, but this can be made up of a number of different incentives. i.e. 2% deposit plus stamp duty which together equate to 5% of the purchase price.
The minimum purchase price is 75,000 and applicants must also achieve a Superpass score.
For flats and maisonettes: where the builder’s incentive is cashback or deposit paid, this is not acceptable to Accord unless the incentive is deducted from the purchase price to calculate the loan to value.

Maximum 75% LTV for flats 90% for 2nd hand flats.

New Build Properties maximum 85% LTV for houses and 85% LTV for flats.

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements



Bank Statements 3 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References No

Insurance
Buildings Conditional

Conditions On Loan
Min Loan /Rmg 50,000
Max Loan /Rmg 3,000,000
Max Portfolio of BTL Loans none
Min Age 18 years
Max Age 75 years
Min Term 5 years
Max Term 35 years


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.

Foreign citizens accepted if resident in UK for at least 2 years for loans up to 75% LTV.

Maximum age for all applicants 75 regardless of LTV.

Lending not available on the Isle of Man.

If an existing mortgage is not being repaid, we will not deduct existing mortgage balances from the maximum borrowing figure if sales particulars are received which prove that the property is being marketed and providing the loan value does not exceed the maximum LTV.

Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income Multiples



Based on Income > 0
4 + 4 or 4 joint

Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 3
Will consider declining profit No

Outgoings
The income multiple information shown is a guide only, ACCORD MORTGAGES WILL ASSESS ALL APPLICATIONS ON AN AFFORDABILITY BASIS. To see how much your client may be able to borrow, please view our affordability calculator at www.accordmortgages.co.uk.

Sustainable bonus - 50%, subject to cumulative figure of overtime & bonus not exceeding the basic income
Sustainable overtime - 50%, subject to cumulative figure of overtime & bonus not exceeding the basic income
Sustainable commission - 50%, subject to the amount not exceeding the basic income

Guaranteed income (allowances, call out payments etc) 100%

Maintenance payments - All payments under CSA or Court Order or Solicitor’s letter can be supplied providing proof of last three payments and the payments have a minimum of two years left to run.

Pay rise - Any increase due within next three months, or next increment if due within 12 months.

Evidence of income

Employed
Less than 75% - Latest payslip AND the latest bank statement showing salary/income credit
Over 75% - 1 Payslip from the latest 2, plus 2 from the previous 5 or Latest P60 plus 2 payslips from the previous 5 AND the corresponding bank statement(s) showing latest 3 salary/income credits.

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.

Deductions from Income

The following outgoings must be declared
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

Mininum Income 10000
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account

Extra Income:-
Other Income - Guaranteed Add 50% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular Add 50% to income before multiply
Investment Income Refer to Lender
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage


Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%



Adverse Credit



CCJs/Defaults : Accept:
1) There must be no Defaultss in the last 72 months. This condition does not incur any rate loading.
2) There must be no CCJss in the last 72 months. This condition does not incur any rate loading.
Arrears : Accept:
1) No arrears (paid or unpaid) in the last 24 months. This condition does not incur any rate loading.
Bankruptcy/IVAs : Accept:
1) IVA must be discharged at least 6 years prior to application. This does not incur any rate loading.
2) Bankruptcy must be discharged at least 6 years prior to application. This does not incur any rate loading.
Repossessions : Not accepted.

Settled Arrears: No missed payments in last 24 months.
Outstanding Arrears: Not accepted.
Settled CCJ's: None in the last 6 years.
Outstanding CCJ's: Not accepted.
Defaults: None in the last 6 years.
IVA's: Not allowed within 6 years.
Bankruptcy: Not allowed within 6 years.



November 2013