Accord Mortgages has eased the affordability squeeze on borrowers, by rewarding those looking to buy a more energy-efficient new build home.
Effective immediately, the intermediary-only lender has updated its affordability model for those purchasing a residential new build home.
It will now automatically apply an expenditure discount to recognise that these types of properties typically have lower utility bills compared to older alternatives.
Available on Accord’s standard product range, as well as Boost LTI (which offers up to 5.5 times loan-to-income (LTI) for clients with household earnings of £60,000 or above), the change will allow them to borrow more – subject to LTI limits – potentially increasing the mortgage amount they could access by up to £13,000.
Andrew Calder, corporate account and propositions manager, said: “As a new build lender, not just a lender that does new build, we’re excited to announce these improvements to our affordability assessment, which will support brokers to help their clients into more energy-efficient homes.
“Our latest common-sense solution is a purposeful change which will reward clients who are looking to purchase a new build property and help them overcome the affordability challenges typical of the current environment and realise their home ownership aspirations.”
Adrian MacDiarmid, head of mortgage lender relations, from Barratt Developments, added: “Accord’s decision to recognise the greater affordability that comes from the lower running costs of a new build home is very welcome.
“It not only helps support customers who want to make more energy-efficient choices but also demonstrates the importance of cross-industry collaboration to address the country’s housing shortage.”
