Accord Mortgages has removed its minimum income requirement for first-time buyers seeking mortgages up to 5.5 times their income, provided they meet all other lending and affordability criteria.
The change, which applies from today, covers the intermediary-only lender’s full product range except for the £5k Deposit Mortgage.
The lender said the updated criteria apply to both individual and joint applications, although at least one applicant must be a first-time buyer.
Loans are available up to 95% loan-to-value and can be used for new-build properties, including flats.
Products in the Boost LTI range are included, and the enhancement applies to new applications only.
At the same time, Accord has simplified the criteria for its joint borrower, sole proprietor offering.
From today, JBSP cases will be available up to 95% loan-to-value and the previous limit preventing more than 25% of the mortgage term from running into the assisting family member’s retirement has been removed.
Accord said the change will make it easier for borrowers to draw on family support when assessing borrowing capacity.
Jeremy Duncombe, managing director of Accord Mortgages, said: “These changes mark our latest moves to support more borrowers in achieving their home-ownership goals.
“We were among the first lenders to respond to the greater flexibility the regulator gave us to set our own higher-loan-to-income lending limits, a change we had long called for.
“At the time, we underlined our commitment to enhancing our support for borrowers in achieving their homeownership aspirations, and we are delivering on that.
“These two changes to our criteria, which offer different ways for borrowers to expand their borrowing potential, show how we’re building on every opportunity to make it possible for more people to access the size of mortgage they need.”
Accord has already reduced the minimum income threshold for its Boost LTI range from £75,000 to £50,000 and expanded eligibility for its £5k Deposit Mortgage to include flats.
The lender said these enhancements have helped customers to borrow an average of 15% more, equivalent to £37,000, towards their home purchase.
