Accord Mortgages has unveiled changes to its affordability assessment that will enable it to lend, on average, 15% more or £37,000 extra to borrowers.
The move comes in response to updated regulatory guidance, which allows lenders to use lower ‘stress rates’ when underwriting mortgage applications. These stress rates are designed to ensure that borrowers can still afford their payments if interest rates rise in the future.
The updated affordability model will apply to all new lending, enabling Accord to support more borrowers in achieving their homeownership goals.
In addition to these changes, the lender has recently launched initiatives to further ease affordability pressures. These include a first-time buyer cashback product offering up to £6,250 to cover increased costs such as higher stamp duty, as well as extended eligibility for its £5k Deposit Mortgage, now available to buyers of flats.
“At Accord, we’re always exploring ways to help borrowers navigate affordability challenges," comments Jeremy Duncombe, managing director of Accord Mortgages, "We’ve welcomed the latest regulatory guidance on stress interest rates, which has given us the opportunity to refine our already competitive affordability model. Combined with changes in market and economic conditions, we’re now able to offer even more support to people looking to buy a home.”
