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Accord Buy to let lending criteria

Accord Buy to let lending criteria

Accord - Buy to let Lending criteria

Notes: The following information may contain errors. 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

Mortgage Product

 

Advances
Up to 1,000,000 (LTV 75)

Notes
Mortgage NOT portable, Mortgage is Flexible, 10% Overpayments allowed per year.
- Mortgage is NOT for First time buyers

Repayment Vehicles - Interest only available up to 75% LTV or Capital and Interest repayment mortgage.

Repayment Strategy - In the absence of a repayment vehicle it is assumed sale of property is the repayment vehicle.

If applicant is married the application can be in sole names.

- Mortgage is NOT for First time buyers (that is where they do not own a residential property already).

First time landlords not allowed.
- An acceptable borrower must own the property in which they reside and have owned one or more Buy To Let’s for at least the last twelve months (For joint applications, both applicants should own the property in which they reside and at least one of the applicants must possess a Buy to Let) – For clarification, please refer to lender.

Group exposure - 3 per applicant (1m).

A solicitor from the lenders panel must be used on all applications.

With some products we will pay the standard valuation fee.
However this payment excludes:
Any second or subsequent valuations; and the cost of any homebuyers surveys, building (structural) surveys or specialist reports 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.


Buy to Let : Accepted, Max properties 15
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 75% LTV
ISA 75% LTV
Split Repayment 75% LTV

Fees


Arrangement : varies Can be Added
Booking : 130 Upfront

Early Repayment Charges
During fixed and discount rates. 10% capital repayments allowed per year without penalty

Higher Lending
None

Basic:
upto 100,000 - 186
upto 150,000 - 210
upto 200,000 - 222
upto 250,000 - 228
upto 300,000 - 240
upto 350,000 - 330
upto 400,000 - 450
upto 450,000 - 570
upto 500,000 - 600
upto 550,000 - 690
upto 600,000 - 780
upto 650,000 - 810
upto 700,000 - 870
upto 750,000 - 918
upto 800,000 - 966
upto 850,000 - 1014
upto 900,000 - 1062
upto 950,000 - 1110
upto 1,000,000 - 1158
upto 1,200,000 - 1194
upto 1,400,000 - 1230
upto 1,600,000 - 1350
upto 1,800,000 - 1470
upto 2,000,000 - 1710

Homebuyers:
upto 100,000 - 387.6
upto 150,000 - 417.6
upto 200,000 - 466.8
upto 250,000 - 478.8
upto 300,000 - 504
upto 350,000 - 693.6
upto 400,000 - 945.6
upto 450,000 - 1197.6
upto 500,000 - 1260
upto 550,000 - 1449.6
upto 600,000 - 1638
upto 650,000 - 1701.6
upto 700,000 - 1827.6
upto 750,000 - 1928.4
upto 800,000 - 2029.2
upto 850,000 - 2130
upto 900,000 - 2230.8
upto 950,000 - 2331.6
upto 1,000,000 - 2432.4
upto 1,200,000 - 2508
upto 1,400,000 - 2583.6
upto 1,600,000 - 2835.6
upto 1,800,000 - 3087.6
upto 2,000,000 - 3591.6

Min Valuation 100000

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.

Land Registry - 0.00 Payable on completion. Land registry registration fee to register our mortgage over your property following completion. This fee is payable to our legal adviser on or before completion and is only refundable if your mortgage does not go ahead. The fee opposite applies to registered properties in England and Wales only. For unregistered properties in England and Wales and for properties in Scotland and Northern Ireland (whether registered or unregistered) different fee scales apply. Our legal adviser will confirm the exact fee payable.

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 No
Thatched No
Timber Framed No
Concrete No
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building Yes

Not Accepted

Buy to let maximum portfolio of 15 properties inclusive of YBS Group, of which no more than 10 can be mortgaged.

Flats in blocks exceeding 6 storeys will be referred to the head of underwriting.

Maximum 75% LTV for houses and flats.

Inter-family purchases are not accepted.

Where the transaction is a purchase, the property must have been owned for a minimum of six months by the vendor conveying the property to the applicant.

For any other property enquiries, please refer to lender.

Accepted Locations : England, Wales

Requirements


Bank Statements 1 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan /Rmg 50,000
Max Loan /Rmg 1,000,000
Max Portfolio of BTL Loans none
Min Age 25 years
Max Age 75 years
Min Term 5 years
Max Term 35 years

Additional underwriting and LTV restrictions may apply to applications above 500,000.

Applicant(s) must have held a BTL property for at least 12 months.

Twelve months satisfactory mortgage conduct will be required for all existing mortgages, whether residential or BTL.

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

Maximum age for all applicants at the end of the mortgage term is 75, regardless of LTV.

Lending not available on the Isle of Man.

Underwriters will still need to be satisfied that the landlord has reasonable knowledge of the area. I.e. other successful BTLs in the area, grew up in the area etc.
Documentation - Accept broker certified copies of originals but originals may be requested if concerns exist.

Accord Buy to Let will now accept solicitor firms who are on Accord Mortgages’ residential Conveyancing Panel and accredited under the Conveyancing Quality Scheme (CQS) maintained by the Law Society of England & Wales. The solicitors chosen will act on a joint basis for the applicant(s) and Accord.

Acceptable Tenancy Types:
-  AST only - Assured Shorthold Tenancy (minimum 6 months, maximum 12 months)
-  One AST per property.
-  Maximum of four tenants on a single AST.
-  Student lets – tenants must all be on one single AST and no internal door locks in the property.

In the absence of a repayment vehicle it is assumed sale of property is the repayment vehicle.

Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income Multipliers
Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5.24%.

Min months in current position 3
Min months in continuous service 12
Min no. of years accounts 3
Average years taken to calculate income 3
Will consider declining profit No

Outgoings

Minimum Income Requirements - At least 1 applicant must have a minimum income of 25,000 (allowable income) from one source per annum.

Employed - For employed applicants we require a twelve month history. The employment must be permanent and not temporary.

Self employed - A three year history in the form of accounts and/ or an accountants’ reference is required or where the business has been trading for less than three years, two years accounts plus a projected third year. In all cases business bank statements will also be required. We will not accept declining profit/ dividend. (The accountant must hold a qualification.)

Directors - salaried directors will be treated as employed unless they take any element of income as dividend and/ or where their shareholding is 25% or above. Where applicants meet these criteria we will apply a combination of employed and self employed validation.

Affordability stress rate set to higher of 5.24% or pay rate, and based solely on rental income (125% test applies).


Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5.24%.

Mininum Income - Single 25000

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance NOT Taken into account
Child Education NOT Taken into account

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

Remortgage



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 the free remortgage legal service is selected, Accord will notify LMS to instruct the solicitor on receipt of the fully completed mortgage application form applicants cannot choose their own legal adviser for the free service. 

Free remortgage legal work is provided by a carefully selected range of legal advisers in England and Wales.  Accord will pay the legal fees for a standard BTL remortgage; however, any fees relating to non-standard work will be payable by the applicant(s).  Free Legals are available for both Freehold and Leasehold properties. 

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 CCJs/Defaultss 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.

CCJ/Default - 0 in 6 years
Mortgage/Secured Loan/ Rent Arrears - 0 in 24 months
Non Secured Arrears - 1 in 24 months
Bankruptcy / IVA - Not allowed within the last 6 years
Repossessions - Not Accepted
Twelve months satisfactory mortgage conduct will be required for all existing mortgages, whether residential or BTL