Accord Mortgage Lending Criteria

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Accord Mortgage Lending Criteria

Mortgage Advances

Up to £5,000,000

Notes

Illustration Type = ESIS.

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.

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.

With this product we will pay the standard valuation. 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 9 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 on this mortgage may apply, please refer to Accord’s website for specific product and criteria information.

Capital Rest Period : Daily

Repayment Types

Repayment Yes

Endowment 75% LTV

PEP 75% LTV

Pension 75% LTV

Interest only (no RV) 75% LTV

With Profits 75% LTV

Unit Linked Yes

ISA 75% LTV

Split Repayment 75% LTV

Fees

Arrangement : £varies

Booking : None

Early Repayment Charges

varies

Higher Lending

None

Valuation

Basic:

Free

Homebuyers:

up to £100,000 - £250

up to £150,000 - £275

up to £200,000 - £315

up to £250,000 - £350

up to £300,000 - £400

up to £350,000 - £450

up to £400,000 - £475

up to £450,000 - £515

up to £500,000 - £560

up to £550,000 - £600

up to £600,000 - £640

up to £650,000 - £675

up to £700,000 - £710

up to £750,000 - £755

up to £800,000 - £800

up to £850,000 - £830

up to £900,000 - £870

up to £950,000 - £910

up to £1,000,000 - £950

up to £1,200,000 - £1100

up to £1,400,000 - £1260

up to £1,600,000 - £1415

up to £1,800,000 - £1575

up to £2,000,000 - £1750

up to £2,200,000 - £1885

up to £2,400,000 - £2050

up to £2,600,000 - £2195

up to £2,800,000 - £2355

up to £3,000,000 - £2510

up to £3,500,000 - £2900

up to £4,000,000 - £3290

up to £4,500,000 - £3670

up to £5,000,000 - £4075

up to £6,000,000 - £4860

up to £7,000,000 - £5650

up to £8,000,000 - £6430

up to £9,000,000 - £7210

up to £10,000,000 - £8000

up to £11,000,000 - £8800

up to £12,000,000 - £9560

up to £13,000,000 - £10350

up to £14,000,000 - £11130

up to £15,000,000 - £11200

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.

Other Valuation Types - Pricing:

-Further Advance £70.00

-Revaluation £70.00

-Drive Past £85.00

-Reinspection £35.00

-Transcription £0.00

-Desktop £85.00

-Building Survey N/A

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.

Funds Transfer Fee - £35.00 Payable on completion.

Lenders Conveyancing Fee - £117.50 Payable on completion. Payable on or before completion to our legal adviser.

Please note, the figure quoted here is an estimate of the work our legal adviser will need to do on our behalf. As such,

this figure only covers part of the overall costs of the legal work that you might need to pay.

Mortgage Fee - £90.00 Payable on redemption.

Acceptable Property Types

Freehold Flat No

Purpose Built Flat Yes

Converted Flat Yes

Flat Over Shop Refer

Maisonette Yes

Studio Flat No

Flying Freehold Refer

Thatched No

Timber Framed No

Concrete No

Agricultural Tie No

Flat Over 4 Storeys No

Listed Building Refer

Right to Buy

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.

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

Min Loan £50,000/Rmg £50,000

Max Loan £5,000,000/Rmg £5,000,000

Max Portfolio of BTL Loans none

Min Age 18 years

Max Age 80 years

Min Term 5 years

Max Term 40 years

For more information on Accords full lending policy’s, please visit www.accordmortgages.com prior to submitting

applications.

Lending in Northern Ireland – restricted to a maximum LTV of 90%.

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

Maximum age for all applicants 80 regardless of LTV. The maximum age for IO on residential is 70 (or what has been

declared as retirement age on the application form, as we cannot take IO lending into retirement).

If an existing mortgage will not be repaid by the time completion takes place we will take the monthly cost of that

mortgage as a deduction when calculating the maximum loan that we will consider.

Interest Only

For residential the criteria is:

- If any element of the loan is on Interest Only, the maximum LTV is 75%

- If Sale of Mortgaged property is selected as the repayment vehicle, the maximum LTV is 50%

- Cases where Sale of Mortgaged property is selected as the repayment vehicle can go above 50% LTV, but for the

further amount up to the maximum 75% LTV, an alternative repayment vehicle or C&I must be chosen

We consider interest only mortgages for already retired customers.

Where pension income is being used in affordability the term of the IO part of the mortgage must not exceed the retired

customers 70th birthday +364 days

Where a retired customers income is not being used, the IO part of the mortgage can extend past the customers 70th

birthday +364 days but must not exceed our max age

We also consider joint interest only applications to customers who are planning to retire during the term of the mortgage

providing their income is not being used and the affordability can be supported by the other joint applicant. Where

income is not being used for a customer a term can be taken up to our max age lending standard.

Interest Only applications not acceptable if raising funds for debt consolidation

Minimum income – none

Acceptable repayment strategies (must be in place and evidenced at application stage and at least once during

mortgage term):

1. *Future sale of main residence – if this is the sole repayment strategy, max

LTV is 50%. Minimum equity £200k.

Plausible downsizing strategy captured and checked.

2. Existing Endowments – mid-point projected maturity value must cover 100%

of the IO element assigned to this repayment strategy. Endowment must have been in place > 12 months. The end of

the endowment term must be in line with the mortgage term. It must be in the name of the borrower(s) only. Must be a

UK policy provided by a regulated firm.

Evidence required – latest endowment policy statement, dated in the last 12 months. As all cases are to be assessed on

a C&I basis, the mortgage endowment premium should not be included in the affordability calculator.

3. General Investments – This can include cash savings. Current value must

cover 100% of the IO element assigned to this repayment strategy. Acceptable investments include Stocks and Shares,

Stocks and Shares ISA, Cash ISA, Unit Trusts/Open Ended Investment Companies (OEIC), Investment Bonds, Premium

Bonds. Must be in the name of the customer(s) only. Must be in pound sterling. Savings must have been held for a

minimum of 12 months.

Evidence required – Stocks and Shares ISA, Cash ISA, Unit Trusts/OEIC, Investment Bonds – copy of latest statement;

Stocks and Shares, Premium Bonds – copy of share certificates/statements containing evidence of holdings and their

valuation; Savings – latest statements

Repayment strategies not accepted:

Overpayments

Pension lump sum

Inheritance

Sale of other property

Sale of assets

Other - There will be no specific IO products. Affordability is to be assessed on a C&I basis. IO is available for Accord

Offset mortgages.

Lending policy for EU/EEA/Swiss Nationals

Following the end of the Brexit transition period any EU, EEA or Swiss nationals (not including Irish (ROI) nationals) will

need to provide evidence of their residency status when submitting a mortgage application.

No LTV restrictions will apply for borrowers with both Settled and Pre-Settled status from the EU settlement scheme.

Applicants will need to provide their Government website share code as evidence of their residency status.

EU, EEA or Swiss nationals without an EU settlement status can still apply to us for a mortgage and will be considered

under our existing criteria for those without permanent right to reside with a maximum of 75% LTV.

Foreign Citizens Accepted

Ex-Patriates Not Accepted

Income

Based on Income > 0

4.49 + 4.49 or 4.49 joint

Based on Income > 70000

5 + 5 or 5 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 2

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 2 years.

Trading accounts (latest 2 years) 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: 2 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.

An applicant’s background BTL portfolio can be classed as self-financing (and excluded from the affordability

assessment) where rental income is 145% or more of the BTL mortgage payment based on an interest-only rate of 4.5%.

Should the BTL mortgage not be self-financing the shortfall will be used in affordability calculation for the client’s

residential mortgage.

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 Max LTV Max% increase

Capital Raising 65%

Home Improvements 65%

Debt Consolidation 65%

School Fees 65%

Holidays/Cars 65%

Buy Other Property 65%

Business Purposes Not accepted

Divorce Settlement 65%

Unencumbered 65%

Unsecured Debt Consolidation:

Maximum of either £50k or 10 repayable debts accepted

Secured Debt Consolidation:

Subject to a maximum 10 debt rule

Maximum of 80% LTV

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 : Ignore Repossessions 72 months ago or over.

No repossessions within the last 6 years.

Bankruptcy/ Individual Voluntary Arrangement (IVA): Must be discharged/satisfied for a minimum of 6 years.

CCJ/Default - 0 in 6 years. All CCJs must be satisfied.

Mortgage/Secured Loan/ Rent Arrears - 0 in 24 months

Non Secured Arrears - No consecutive missed payments within the last 24 months including Communications, utility,

fixed term or Mail Order

Unsecured credit - No missed payments within the last 24 months including Communications, utility, fixed term or Mail Order