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