"As well as increasing our maximum loan sizes for new build and non-newbuild homes, we have lowered our minimum deposit requirements for new builds, to make this a possibility for more people"
- Andrew Calder - Accord
Accord has announced a series of changes aimed at improving mortgage access, including increasing its maximum loan amounts by up to £1.6 million and expanding 95% loan-to-value (LTV) lending to new-build houses.
The intermediary-only lender is raising the ceiling on how much it will lend to borrowers seeking more than 75% of their property’s value, in a move designed to address affordability pressures in areas with higher house prices. It is also lowering deposit requirements for new-build homes, widening options for buyers interested in energy-efficient properties.
Changes to maximum loan sizes
For borrowing above 75% and up to 85% LTV, the maximum loan has increased to £2.6 million. Previously, the limit was £2 million for non-new-builds and £1 million for new-builds. For all property types and borrower categories, the maximum loan at 85% to 90% LTV has been raised from £750,000 to £1 million.
For those borrowing between 90% and 95% LTV, excluding new-build flats, the cap has risen from £600,000 to £750,000. Limits for loans under 75% LTV and for non-new-build loans between 95% and 99% LTV remain unchanged at £5 million and £495,000 respectively.
New-build lending
From today (June 4), the lender will also increase its maximum LTV for new-build houses from 90% to 95%, providing additional flexibility for buyers with smaller deposits.
These latest changes follow a series of adjustments aimed at improving affordability outcomes. Recent measures include updates to Accord’s affordability model and a revised ‘stress rate’ used in mortgage application assessments. The lender has also expanded its £5k Deposit Mortgage, which allows borrowing of up to £500,000 with a £5,000 deposit, to include flat purchases.
“House prices rising by around a quarter over the past five years has made it harder and harder for people – and especially first-time buyers – to access the size of mortgage they need," explained Accord'sstrategic partnerships and propositions manager Andrew Calder. "Meanwhile, costs have gone up so significantly in some areas of the country, it’s hard for borrowers to secure the kind of mortgage they need. This means they either have to make up for this with a much bigger deposit than the norm, which can put many out of the race; or they face waiting years to realise their homeownership dreams while they save up more.
He added, "At the same time, many buyers want to purchase new-build houses because of their energy efficiency and relatively low maintenance requirements. Therefore, as well as increasing our maximum loan sizes for new build and non-newbuild homes, we have lowered our minimum deposit requirements for new builds, to make this a possibility for more people.
"At Accord, we are always looking at opportunities to help remove blockers for borrowers, and help them achieve their homeownership goals.”
