Accord Mortgages is lowering its minimum income requirement for those borrowing more than 4.49-times their salary, to £60,000 from £70,000.
The change, taking effect from today (Wednesday 10 May), applies to mortgages up to 90% loan-to-value (LTV), or 85% for newbuild, and includes the intermediary-only lender’s Boost LTI product, which offers up to 5.5 times loan-to-income for clients who need more flexibility around income multiples in order to achieve their borrowing goals.
Accord’s commitment to responsible lending will continue to apply and applications will still have to meet its Standard Lending policy and affordability requirements.
Nicola Alvarez (pictured), senior manager mortgage distribution – proposition development, for Accord, explained the change is aimed at giving borrowers, from first-time buyers to those looking to move up the property ladder or remortgage, yet more flexibility to help them meet their borrowing objectives.
The changes will not apply to applications under the New Build Deposit Unlock scheme, or cascade score applications.
Alvarez added: “This is the latest example of Accord’s ongoing commitment to developing more and more of the common-sense lending solutions brokers have come to expect of us, to support them as much as we can in helping their clients in today’s challenging mortgage market.
“We hope this latest change to our minimum income requirements, giving them greater access to higher income multiples, will help them with their vital role in finding solutions for as many borrowers as possible.”
This latest change follows Accord’s recent re-entry into the 80% loan-to-value space for buy-to-let mortgages, another move designed to provide more options for borrowers – in that case, for squeezed landlords.
