Accord Mortgages has made improvements to its interest-only criteria, providing brokers and their clients with greater flexibility and choice.
One of the key updates includes the addition of the sale of another UK property as an acceptable repayment strategy for interest-only mortgages.
Accord has also expanded the range of acceptable repayment strategies by allowing the use of a pension lump sum as a repayment strategy. This option is available to applicants whose mortgage term extends beyond the age of 55 and who are eligible to receive their pension lump sum.
To further enhance borrower options, Accord has increased the loan-to-value (LTV) limits for certain repayment strategies.
The LTV limit for mortgages with the repayment strategy of selling the mortgaged property has been raised from 50% to 60%.
Additionally, the minimum equity requirement for this repayment strategy has increased from £200,000 to £250,000 (£300,000 in London).
In addition, Accord has expanded the maximum LTV for mortgages that combine interest-only and repayment elements. The maximum LTV for the overall mortgage has been increased from 75% to 85%, while the maximum LTV for the interest-only portion remains at 75%.
Nicola Alvarez (pictured), senior manager for new propositions at Accord Mortgages, said: “We’re delighted to enhance our interest-only offerings to provide brokers and their clients with increased flexibility.
“This is another example of how Accord continually improves its criteria to support brokers in finding solutions that meet the evolving needs of their clients.”
