Accord Mortgages Lending criteria

Accord Mortgages
Yorkshire House Yorkshire Drive Bradford
BD5 8LJ

https://www.accordmortgages.com/

Advances
Up to £1,000,000 (Remortgage only LTV 65)

Max LTV 80%

Notes
Illustration Type = ESIS.
Mortgage NOT portable, Mortgage is Flexible, 10% Overpayments allowed per year.
– Mortgage is NOT for First time buyers

NEW LENDING – DEBT CONSOLIDATION – Maximum of either £50k or 10 repayable debts accepted. If applicant is married the application can be in sole names.
Group exposure – 3 per applicant (£1m).

A solicitor from the lenders panel must be used on all applications. Consumer BTL – accepted
Maximum number of BTL properties is 15. Maximum of 10 with a mortgage. Accord BTL accept First Time Landlords (FTL) up to a maximum of 75% LTV.
Free valuations exclude 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.

Restrictions on this mortgage may apply, please refer to Accord’s website for specific product and criteria information.
Buy to Let : Accepted, Max properties 15 Let to Buy : Accepted
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 80% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment No

Fees

Arrangement : Booking : £varies Can be Added 
Early Repayment Charges
varies

Higher Lending
None

Valuation Basic: Free (if applicable)
Homebuyers: up to £100,000
– £387.6
up to £150,000 – £417.6
up to £200,000 – £466.8
up to £250,000 – £478.8
up to £300,000 – £504
up to £350,000 – £693.6
up to £400,000 – £945.6
up to £450,000 – £1197.6
up to £500,000 – £1260
up to £550,000 – £1449.6
up to £600,000 – £1638
up to £650,000 – £1701.6
up to £700,000 – £1827.6
up to £750,000 – £1928.4
up to £800,000 – £2029.2
up to £850,000 – £2130
up to £900,000 – £2230.8
up to £950,000 – £2331.6
up to £1,000,000 – £2432.4
up to £1,200,000 – £2508
up to £1,400,000 – £2583.6
up to £1,600,000 – £2835.6
up to £1,800,000 – £3087.6
up to £2,000,000 – £3591.6
Min Valuation £75000
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.

Acceptable Property Types

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

Right to Buy
Not Accepted

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 18 years
Max Age 85 years
Min Term 5 years
Max Term 40 years
Additional underwriting and LTV restrictions may apply to applications above £500,000.

Scheme 1 ICR- Free Hold property @ 135%. Scheme 1 Stress Rate- Freehold Property @ 5.5% Scheme 2 ICR-Leasehold Property @ 145%. Scheme 2 Stress rate- Leasehold Property @ 5.5%
Scheme 3 ICR ( Applicable for both Freehold & Leasehold) @ 125%. Scheme 3 Stress Rate ( Applicable for both Freehold & Leasehold) @ 5.5%
Maximum age for BTL – The customers maximum age at the time of application is 75, and the maximum age at term end is 85.

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

NEW LENDING – DEBT CONSOLIDATION – Maximum of either £50k or 10 repayable debts accepted.

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

Foreign citizens accepted; they only need to reside in UK at time of application but we must verify 3 years address history and satisfy POR criteria

A property being re-mortgaged must have already been owned for 6 months.

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 3 years)
– 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 Refer
Ex-Patriates Not Accepted

Income Multipliers

Landlord Type
Tax Band
LTV
Loan Size
Interest Rate %
Cover Level %
Landlord Basic Rate Any Any 5.5 125
Landlord Higher Rate Any Any 5.5 135
Portfolio Landlord Basic Rate Any Any 5.5 125
Portfolio Landlord Higher Rate Any Any 5.5 135

Min months in current position 3
Min months in continuous service 12
Min no. of years accounts 2
Average years taken to calculate income Will consider declining profit 2
No
Outgoings
Minimum Income Required: £25,000 per annum per application. However, we will consider cases that do not meet the requirement if there are overriding financial reasons which means the landlord can support the mortgage in case of periods of rental voids.

Joint Applicant Minimum Salary BTL – £25,000 per annum per application. However, we will consider cases that do not meet the requirement if there are overriding financial reasons which means the landlord can support the mortgage in case of periods of rental voids.

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

Self-employed – A two year history in the form of Tax Calculations (SA302) with corresponding Tax Year Overviews/ an accountants’ reference are required, or where the business has been trading for less than two years, two years confirmed figures in the form of Tax Calculations (SA302) with corresponding Tax Year Overviews/ accountants reference plus a projected third year. In all cases the latest months business bank statement and latest months personal bank statement will also be required. We will not accept declining profit/ dividend. (The accountant must hold a suitably recognised 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 self-employed validation.

100% of declared state pension income is allowable in income calculations.

ICR requirements:
Initial product length under 5 years – 5.50% or product rate plus 2% – whichever is higher Basic rate applicant tax rate – Straight Switch – 125% ICR
Basic rate applicant tax rate – Capital Raising – 125% ICR Higher rate applicant tax rate – Straight Switch – 135% ICR Higher rate applicant tax rate – Capital Raising – 145% ICR

Initial product length over 5 years – 4.50% or product rate plus 1% – whichever is higher Basic rate applicant tax rate – Straight Switch – 125% ICR
Basic rate applicant tax rate – Capital Raising – 125% ICR Higher rate applicant tax rate – Straight Switch – 145% ICR Higher rate applicant tax rate – Capital Raising – 145% ICR

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 Add 100% to income before multiply
Car Allowance Add 100% to income before multiply

Remortgage 

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%
Adverse Credit
CCJs/Defaults : Accept:
1) There must be no CCJs/Defaults 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 : Repossessions settled 72 months ago or over will be accepted, and do not incur any rate loading.

CCJ/Default – 0 in 6 years. All CCJs must be satisfied. Mortgage/Secured Loan/ Rent Arrears – 0 in 24 months
No unsecured debt consolidation where the loan exceeds 65% LTV OR, the value of unsecured debts being consolidated is not greater than £50k or the volume is not greater than 10
Bankruptcy / IVA – Not allowed within the last 6 years
Repossessions – not acceptable within the last 6 years. It is acceptable if declared, over 6 years ago, no other credit issues and passes credit score
issues and passes credit score
Twelve months satisfactory mortgage conduct will be required for all existing mortgages, whether residential or BTL