Criteria
Criteria topics are in A to Z order - you can filter the criteria by simply clicking the letters below or you can use our search facility.
Additional lending
Criteria
Application
Applicants (those currently on a Prime product) must have had their product for at least 6 months and have maintained full mortgage payments on time during the term. However, any Prime client with a product that is over 12 months old, must have made mortgage payments on time for the last 12 months.
Credit Repair applicants (those currently on a Credit Repair product) must have a minimum 24 months track record before an additional loan can be considered and all payments within the last 24 months must have been made on time and in full.
Minimum & Maximum Loan Term
Maximum: The additional lending term cannot exceed the term remaining on the original mortgage account. Nor can the term exceed the maximum term that is available for new lending, which is 35 years.
Product Criteria
All Additional Loans are subject to product criteria, including minimum loan size and maximum LTV.
Credit Referencing
A full credit reference search is carried out for all additional lending applications.
Please see the Adverse Credit Information section for further criteria.
Adverse Credit
CCJs/Court Decrees
Only one is acceptable if the maximum value is £500, registered over 36 months ago and satisfied.
Defaults
1 default registered within the last 36 months is acceptable subject to a maximum value of £150.
The following mortgage, secured loan or tenancy arrears are acceptable:
Prime Accounts - No missed payments in the last 12 months. No more than 1 missed mortgage payment within the last 24 months.
Credit Repair Accounts - No missed payments in the last 24 months. If any payments have been missed in the last 24 months, the additional loan application cannot be accepted.
For unsecured loans, missed payments cannot exceed the equivalent of 3 monthly payments during the last 24 months on any individual loan agreement
Existing Credit Repair Customers
Credit Repair customers can be classed as PRIME once they have made 24 consecutive monthly payments on time and in full. Once this is achieved, any historic adverse (known at time of original mortgage application) can be ignored.
Accounts with characteristics we no longer offer
Credit Repair
Accord no longer offers credit repair lending to new or existing customers. In order to apply for additional lending, existing credit repair customers now need to be classed as Prime. All mortgage payments must be paid in full and on time for the last 24 months to be classed as Prime.
Self Certification (Self-cert)
Accord no longer offers new customers the ability to self certify their income. An existing customer who originally took a self cert loan will have to meet normal lending rules for income verification before additional lending can be considered. If the customer can meet the normal lending rules for income verification, the additional loan should be on a full status product and income verification is required to support the total debt (additional loan + existing debt).
Additional Loans - LTV over 85%
Accord's maximum LTV is 85%. Where the additional borrowing is for home improvements, the maximum LTV may exceed 85% of the current valuation providing the additional loan does not exceed 85% LTV of the gross/future value.
Types of additional loan
Home Improvements
Available for alterations, improvements and repairs to the property, subject to normal lending limits and credit score.
Prime below 85%:
Lending based on current value
Prime above 85% current value but below 85% of gross/future value:
- Estimates required
- Lending based on value when works have been completed and therefore final inspection is required before release.
Home Improvements already undertaken
Requests to reimburse home improvement works already carried out can be accepted and are subject to the maximum LTV for the product type.
Capital raising including debt consolidation
- Maximum LTV 85% (subject to normal LTV limits for higher value loans).
- No solicitor required
Purchase of Non Adjoining Land/Holiday Home
Borrowers are advised to seek legal advice before entering into the transaction. Funds released upon request. Maximum LTV 85% (subject to normal LTV limits for higher value loans).
Purchase of Adjoining Land
A solicitor should be instructed by borrowers to add land to existing title; funds will be released to the acting solicitor. Funds released upon request.
Up to 85% LTV (subject to normal LTV limits for higher value loans).
Transfer of Equity/Purchase of interest
The involvement of a solicitor is required. Funds released on confirmation of completion of legal formalities. Up to 85% LTV (subject to normal LTV limits for higher value loans). The solicitor should confirm the consideration amount in writing at application stage.
Extension of Lease
The involvement of a solicitor is required. Funds are released on solicitor's request. Up to 85% LTV (subject to normal LTV limits for higher value loans).
The solicitor should confirm the consideration amount in writing at application stage.
Purchase of share in freehold interest
E.g. purchase of share in management company. The involvement of a solicitor is required. Funds released on solicitor's request. Normal lending limits apply. Solicitors should confirm the consideration amount in writing at application stage.
Adverse credit
The following mortgage, secured loan or tenancy arrears are acceptable:
- No payments missed in the last 12 months.
- No more than 1 missed mortgage payment within the last 24 months.
- All payments must have been made within one calendar month of the due date in order not to be classed as arrears.
- However, where DSS benefit is being received the applicant(s) must have paid 75% of the payment themselves
- In all cases, payment holidays are treated as missed payments, unless they have paid in advance.
On unsecured loans the number of missed payments cannot exceed the equivalent of 3 monthly payments during the last 24 months on any individual loan agreement
CCJs and Defaults
| Adverse | Maximum Total Limit | Registered | Satisfied |
|---|---|---|---|
| CCJs/Court Decrees | Maximum value £500 and satisfied | Over 36 months | Within 6 months of being registered |
| Defaults | 1 default registered within the last 36 months with a maximum value of £150 is acceptable. This is per APPLICATION and not per applicant. | ||
Bankruptcy /Sequestration
Requirements
- We do not accept undischarged bankruptcies
- The Bankruptcy/Sequestration must have been discharged for a minimum of 36 months. The maximum LTV in these circumstances is 85%
- The credit search must confirm that the Order is discharged or
- A copy of the discharge certificate is required
- Bankruptcies are now automatically discharged after 12 months; proof of discharge is still required.
- Sequestration is the Scottish equivalent to Bankruptcy, and is normally discharged three years after it was registered, proof of discharge is still required.
Individual Voluntary Arrangement (IVA) and Trust Deeds
IVAs considered if:
- Satisfied over 36 months ago, with no other adverse present on the account
- The applicant(s) can provide a copy of the IVA/Trust Deed document or statement/letter produced by an Insolvency Practitioner (IP) to confirm the agreed monthly payment arrangement, satisfactory conduct and final payment date where appropriate.
We cannot accept IVAs with unsatisfactory conduct.
Possessions
Customers who have had a property repossessed in the past cannot be accepted for mortgage purposes.
Additional Lending
Adverse Credit
CCJs/Court Decrees
Only one is acceptable if the maximum value is £500, registered over 36 months ago and satisfied.
Defaults
1 default registered within the last 36 months is acceptable subject to a maximum value of £150.
The following mortgage, secured loan or tenancy arrears are acceptable:
Prime Accounts - No missed payments in the last 12 months. No more than 1 missed mortgage payment within the last 24 months.
Credit Repair Accounts - No missed payments in the last 24 months. If any payments have been missed in the last 24 months, the additional loan application cannot be accepted
Existing Credit Repair Customers
Credit Repair Customers can be classed as PRIME once they have made 24 consecutive monthly payments on time and in full. Once this is achieved, any historic adverse (known at time of original mortgage application) can be ignored.
Concessionary purchase
Inter Family Purchases
Inter family purchases from an immediate family member are acceptable to Accord. Maximum LTV is based upon the valuation. The maximum loan amount cannot exceed the discounted purchase price.
A solicitors letter is required to confirm the reduced purchase price and name of vendor.
Direct Debit
Payment Date
A payment date between the 1st and 28th of the month should be selected. If no date is specified, payments will be collected on the 1st of the month.
Early Repayment Charges (ERC)
New Borrowing
Early Repayment Charges are stated for each product on the appropriate product & criteria guides. All mortgage products are portable should the applicant move house within the rate period. See the relevant product guide for details.
Existing Borrower Transfer (EBT)
Any EBTs during the product period are subject to payment of ERCs.
Exclusions
Applicant Exclusions
We do not accept applications from: property developers, investor clubs or where a finders fee exists; applicants purchasing a property from a company in which the applicant has an interest, back to back or sub sales, social housing schemes or distressed sales.
Existing Borrower Transfers (EBT)
Existing Borrower Application
During the product period or at the end of the product period existing customers can transfer onto a new product from Accord's EBT range.
Early Repayment Charges (ERC)
Any EBTs during the product period are subject to payment of the ERCs.
Full Status
Where the borrower already has a full status loan, any EBT should also be on a full status product. No proof of income is required.
Mortgage Payment History
Prime Borrowers
For Prime EBT applications, there must be no more than 1 missed/late payment in the last 12 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.
Credit Repair Borrowers
In order to qualify for a Prime EBT product, there must be no missed/late payments in the last 24 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.
The customer will then qualify for the Credit Repair Guarantee and for our purposes is now a Prime customer.
Minimum Loan
- Minimum loan size is £10,000
- More than one product can be taken to make up the loan, provided that the product minimum loan size is met -see the individual product for details.
Minimum Term
The minimum term remaining on the mortgage in order to take a product is dependent on the products available at the time and the term remaining on the mortgage.
For example, where a customer has 5 years remaining on their mortgage term they can choose a 2, 3 or 5 year product (if these are available), but the customer could not select a 10 year product.
Procuration Fees
No procuration fees are paid for EBTs
Revaluations
We take into account your client’s mortgage balance compared with the estimated value of their property. We calculate this estimated value by using our House Price Index, which is recalculated every quarter. This is the figure we use when assessing your client’s eligibility for our Existing Borrower Transfer products unless you request a revaluation.
You can request a revaluation of your client’s property to ascertain the current LTV, if you believe your client’s property's current value is different to the estimated valuation on our records. Please note that by requesting a revaluation you are not reserving any of our mortgage products or interest rates. Products can be withdrawn at any time and you will only be able to choose from the range available once your client’s current valuation is confirmed.
If a re-valuation is required, a non-refundable fee £70 is payable. This fee is payable upfront on request of a re-valuation. This can be paid by credit/debit card over the phone.
Product Criteria
Self Cert
Self-Cert - is aimed at borrowers who cannot evidence their income through payslips due to being self-employed, having commission based earnings etc.
Prime
Borrowers previously on a Prime self cert product who can now fully prove their income can select a full status product. Borrowers previously on a Prime self cert product who cannot prove their income must select a self cert product. For Prime EBT applications, there must be no missed/late payments in the last 12 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.
Credit Repair
Borrowers previously on a Credit Repair self cert product and who have made all their payments on time and in full within the last 24 months, and can now prove their income can select a full status prime EBT. Borrowers previously on a Credit Repair self cert product and who have made all their payments on time and in full within the last 24 months, and still can't prove their income must select a self cert prime EBT. In order to qualify for a Prime EBT product, there must be no missed/late payments in the last 24 months payment history. Mortgage arrears must be less than the value of 1 month's mortgage payment, up to a maximum of £100, at the time of applying for a transfer and completion of transfer.
Full Status
Where the borrower already has a full status loan, any EBT should also be on a full status product. No proof of income is required.
Existing Mortgage
Let to Buy
Let to Buy (LTB) applications are acceptable where the income is sufficient to support both the outstanding mortgage and the new mortgage with Accord.
Property already let out
New Buy to Let (BTL) applications are not accepted.
Where the property is already let out, the outstanding mortgage(s) can be ignored if let for a minimum of 6 months from the date of application and:
- The rental income must be at least 100% of the associated mortgage payment (including repayment vehicle)
- The rental shortfall amount (difference between actual rent and 150% of mortgage payment) has been included as a monthly deduction within the affordability assessment and the loan remains affordable.
To evidence this, the applicant(s) must provide:
- Latest bank statements evidencing rental income for the last 6 months
- Evidence of last 12 months mortgage payments being made
If the property has not been let for 6 months or is not self-financing, the mortgage payment is treated as a monthly commitment for purposes of affordability.
Staggered Completions
Where completion of the sale of the current property will not take place until after completion of the purchase, it is acceptable to proceed without the applicant's income covering both loans providing contracts have been exchanged (missives concluded in Scotland).
The completion date of the sale must be no more than two months after the completion date of the purchase. A solicitor's letter must be obtained confirming these details.
Foreign Nationals
EU Citizens / Indefinite Leave to remain
EU Citizens
Applicants from member countries can be accepted within normal lending criteria. Member countries are: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.
European Economic Area
Applicants from countries, which are members of the European Economic Area, can also be accepted within normal lending criteria. These include: Iceland, Liechtenstein, Norway & Switzerland.
Indefinite leave to remain
Evidence of indefinite leave is required. This should be evidenced either by a stamp in the applicant's passport, or by a letter from the Home Office.
Indefinite leave to remain not granted
Acceptable at a maximum LTV of 75%.
All applicants must have resided in the UK for a minimum period of two years immediately prior to the date of the application and all applicants must have evidence that they can currently reside in the UK e.g. Immigration Documentation or passport stamp.
Guarantors
Guarantor applications
Guarantors are not acceptable.
Higher Lending Charge (HLC)
HLC payable
For details on the HLC payable visit the Fees & Charges page
HomeBuy Scheme
HomeBuy applications
Not accepted.
Identification
Acceptable evidence of identification
One of the following is acceptable:
- Current signed passport
- Current EU or UK (full/provisional) photo card driving licence or full/provisional UK driving licence.
- Foreign National ID Card (issued by Home Office)
- Residence permit issued by Home Office on sight of own country passport
- Signed employer ID photo card
- Armed forces ID card
- EU member state ID card
- Firearms Certificate
- HM Revenue & Customs Tax Notification
- Benefit Book or original letter from Benefits Agency confirming right to benefits
Income
Affordability
Accord Mortgages uses affordability to assess borrowing during our lending decision process. Please note that sourcing systems use income multiples to give a guide - which can give very different results. For an estimate of how much your client(s) can borrow, please visit our online affordability calculator.
Applications with a loan size over £500,000 will be subject to additional lending rules, which may impact the maximum borrowing that can be offered.
Acceptable forms of Income
Main Income
- There is no minimum time in current employment.
- 100% of gross basic salary accepted.
- Employment must be permanent.
- If the applicant has two part-time jobs - 100% of the income can be accepted.
Second Job Income
- 50% can be accepted.
- Employment must be permanent.
- The Applicant must have been employed in a second job for a minimum of 1 year.
Retirement Income
If the applicant is within 10 years of retirement, details of post retirement income is required. We will utilise the pension income or current salary, whichever is the lower, to calculate the maximum lending.
Allowances
100% of the following allowances accepted:
- Car
- Shift
- Rent
- Standby
- Call out
- Weighting/Large Town
- Housing allowance
- Payments made in lieu of benefits
- Band Enhancements
Bonus / Overtime
50% of sustainable overtime & bonus subject to the cumulative figure not exceeding the basic income.
Piecework
50% of the confirmed sustainable amount.
Commission
50% of Sustainable Commission
Subject to the amount not exceeding basic salary. If acceptable proof of the sustainable commission amount cannot be obtained, the above will be applied only to the amount of commission which can be evidenced.
Confirmed pay increase
Any increase must be within 3 months of application and confirmed by the employer.
Maintenance payments
50% of maintenance payments can only be accepted where the applicant is also in receipt of other allowable income, subject to:
- Receipt of copy of Court Order or
- Payments through CSA or
- Solicitors letter confirming payments AND
- Bank statement to evidence latest payment
Payments must have a minimum of two years to run from the date of application.
Benefits
100% of the following benefits:
- Widows pension
- Retirement pension
- War widows pension
- War disablement pension
The award letter will be required to evidence this income along with bank statements for the assessment of income and affordability:
- Bank statement showing latest benefit credit.
For any other form of benefit, please speak to your Business Development Manager to discuss the case.
Investment income
Will be accepted on an individual basis. If accepted six months bank statements and/or confirmation from the stockbroker must be received as evidence.
Rental income (Buy to Let/BTL)
Normal self employed criteria applies.
Maternity income
Applicants must be able to confirm their intentions regarding their plans following maternity leave:
- Employment - including the propsed date they intend to return to work and the number of hours they will work each week.
- Income - expected salary
- Potential childcare costs
Where income will reduce, the expected income level will be used to calculate affordability. Income in employment must be verified as per current policy (for the period prior to maternity if already on leave).
Probationary Period
All probationary periods can be disregarded.
Fixed Term Contracts
Can be accepted - see evidence of income for full details.
Zero Hours Contracts
We do not accept zero hours contracts as a form of income.
Umbrella Companies
Applications may be considered where a two-year track record of this type of income can be demonstrated. A letter from the umbrella company confirming the total amount earned during the last two years and the potential income in the forthcoming year must be obtained.
Salaried directors
Salaried directors are treated for income purposes as employed applicants and the same evidence of income should be obtained as detailed against employed applicants.
In addition:
- Salaried Directors with more than 25% shareholding -
Latest full months personal bank statement. In addition to this we’ll write to your client’s accountant for confirmation of your client’s income. - Salaried Directors with less than 25% shareholding -
Salaried directors with less than 25% shareholding are treated for income purposes as employed applicants and the same evidence of income is required as detailed against employed applicants. - Limited Company Directors with more than 25% Shareholding or less than 25% where income is derived from dividends - latest full months personal bank statement and latest full months business bank statement. In addition to this we’ll write to your client’s accountant for confirmation of your client’s income. If the accountant is not on our list of recognised accountants (see list below) or your client doesn’t have an accountant, we’ll require your client’s latest 3 years SA302s.
Deductions from Income
The following outgoings must be declared:
- Overdrafts.
- Monthly cost of any loans, including student loans.
- Monthly cost of maintenance payments.
- 3% of credit card balances at the time of application.
- Monthly cost of IVA.
- Monthly costs of childminding, nursery or school fees.
- Monthly cost of other significant outgoings: these are outgoings that the applicant/s could or would not cease paying if they needed to reduce expenditure.
- Where the applicant clearly states that outstanding loans are to be repaid only 50% of the monthly payment will be deducted from income. A condition will be applied to every offer stating the applicant’s intention to repay the loan.
- Monthly mortgage payment on properties that are about to be let or have been let for less than 6 months
- We will use any ground rent or service charges your client has to pay in our affordability calculation.We will need to see either sales particulars, a letter from the Estate Agent, bank statement (for remortgages) or, a solicitor's letter as proof of the monthly payment.
- You need to tell us if the applicants are aware their income will reduce at any time in the future. Some examples may include:
- Loss or reduction of overtime/bonus
Notice of redundancy
Planned reduction in working hours
End of contract working
- Loss or reduction of overtime/bonus
Evidence of income
If there are any concerns regarding the income Accord reserves the right to obtain further documentation.
Retirement Strategy - details of how the applicant plans to meet his/her mortgage commitments will be required if the retirement income is not sufficient to meet mortgage repayments.
Bank Statements
Original bank statements are required to support all mortgage applications to evidence income and support the affordability assessment.
Online bank statements are acceptable, providing these clearly show:
- The applicant’s name, account number, bank name and web address.
- A page number/statement number/ sheet number is also required.
- Only the page showing the applicant’s income is required, providing the rest of the requirements are met.
Overdrafts identified on Bank Statements are acceptable where:
- The applicant’s bank accounts return to credit following receipt of income each month AND
- There is no evidence of bounced cheques or missed Direct Debit and Standing Order payments on any bank statements received AND
- 3% of the highest overdraft figure (declared or verified within the last 3 months) has been included in the affordability assessment and the loan is still affordable.
Employed
75% LTV and below 1 payslip from the latest 2, plus corresponding bank statement verifying the salary credit into the bank account.
Above 75% LTV 1 Payslip from the latest 2, plus corresponding bank statement to verify the salary credit into the bank account, plus 2 payslips from the previous 5.
Online payslips are acceptable subject to the document containing:
- The customer’s name
- The customer’s National Insurance Number
- Employer’s Name
- Employer’s company logo OR http web address confirming the company details.
Self Employed/ Partnership/ Limited Liability Partnership (LLP)
- Latest full months personal bank statement
- Latest full months business bank statement
In addition to this we’ll write to your client’s accountant for confirmation of your client’s income. If the accountant is not on our list of recognised accountants (see list below) or your client doesn’t have an accountant, we’ll require your client’s latest 3 years SA302s.
Limited Company Directors with more than 25% Shareholding or less than 25% where income is derived from dividends
- Latest full months personal bank statement
- Latest full months business bank statement
In addition to this we’ll write to your client’s accountant for confirmation of your client’s income. If the accountant is not on our list of recognised accountants (see list below) or your client doesn’t have an accountant, we’ll require your client’s latest 3 years SA302s.
Salaried Directors with less than 25% shareholding
Salaried directors with less than 25% shareholding are treated for income purposes as employed applicants and the same evidence of income is required as detailed against employed applicants.
Salaried Directors with more than 25% shareholding
- Latest full months personal bank statement.
In addition to this we’ll write to your client’s accountant for confirmation of your client’s income.
Important: We’ll always take into consideration the net profit for the last trading year or the average for the last 3 years, whichever is lower. If the business has been set up for less than 3 years, we will require details from the last 2 years together with a projection for the current year.
Rental Income (Buy to Let/BTL)
Normal self-employed income evidence required.
Recognised accountants
- Institute of Chartered Accountants (FCA/ACA)
- Institute of Chartered Accountants (Scotland) - (FCAS/ACAS)
- Association of Chartered Certified Accountants (ACCA/FCCA)
- Chartered Institute of Public Finance Accountants (CIPFA)
- Institute of Company Accountants (ASCA/FSCA)
- Association of Authorised Public Accountants (FAPA/AAPA)
- Association of International Accountants (FIA/AIA)
- Chartered Institute of Management Accountants (CIMA)
- Institute of Chartered Accountants of Ireland (ICAI)
- Institute of Chartered Accountants Scotland (ICAS)
Fixed Term Contracts
The applicant must fall into one of the following:-
- At least 12 months of a contract remaining, or
- Where less than 12 months remaining (minimum original length of 12 months), a 2 year track record of income from the contract work will be required. For example:- Tax Returns and latest SA302/310
Income – Additional Lending
Evidence of income
The latest payslip and corresponding bank statement required if employed. Normal self-employed or limited company director documentation required for self-employed applicants.
Deductions from Income
The following outgoings must be declared:
- Overdrafts.
- Monthly cost of any loans.
- Monthly cost of maintenance payments.
- 3% of credit card balances at the time of application.
- Monthly cost of IVA.
- Monthly costs of childminding, nursery or school fees.
- Monthly cost of other significant outgoings: these are outgoings that the applicant/s could or would not cease paying if they needed to reduce expenditure.
- Monthly mortgage payment on properties that are about to be let or have been let for less than 6 months.
Interest Charging
Interest is charged daily on all products.
Loan Term
Maximum loan term
The maximum loan term is 35 years
Minimum loan term
The minimum loan term is 5 years.
Minimum/Maximum Age
Minimum age at application
All applicants must be at least 18 years of age.
Maximum age at application
All loans must be repaid by age 75 of the oldest applicant.
Minimum & Maximum Loans and LTV
Maximum Loan & LTV
- The maximum LTV on new build flats is 85%, the maximum LTV on second hand flats is 95%.
- The maximum LTV on new build houses is 85%.
See individual product details for any maximum loan / maximum LTV applicable.
Where the applicant chooses to add the Product Fee to the mortgage at completion, we will not include this in the LTV calculation.
Minimum Loan
For lending above 75% LTV the following applies:
- Minimum loan size is £75,000
- More than one product can be taken to make up the loan provided that the total loan size is at least £75,000
- The product minimum loan size must be met -see the individual product for details.
For lending up to 75% LTV the product minimum loan applies.
Number of Borrowers
Maximum number of borrowers
- Up to two borrowers
- Applications for married applicants must be submitted in joint names
Overpayment
Overpayments are stated for each product on the relevant product & criteria guides.
Portability
General criteria
All portability top-ups are subject to product criteria, including minimum loan size, maximum LTV, product fee and credit score.
Minimum Term
The minimum term is dependent on the products available at the time and the term remaining. For example, where a customer has a remaining mortgage term of 5 years, the customer can choose a 2, 3 or 5 year product (if these are available) but cannot select a 10 year product.
Mortgage Payment History
Prime Borrower - If top up is not required - the last 3 months mortgage payments must have been made and there must be no more than 2 mortgage payments currently outstanding.
Prime Borrower - If top up is required - there must be no missed payments within the last 12 months AND no more than 1 missed payment within the last 24 months.
Credit Repair Borrower - If top up is not required - the last 3 months mortgage payments must have been made and there must be no more than 2 mortgage payments currently outstanding.
Credit Repair Borrower - If top up is required - 0 missed payments in the last 24 months and would qualify for a Prime top up product subject to the whole application meeting Prime criteria.
Applications with Characteristics which we no longer allow
Any applications falling outside our new lending criteria may be considered on an individual basis.
Early Repayment Charges (ERC)
Any ERCs must be paid by the customer and these will be refunded if the customer returns to Accord within 6 months of the date of redemption.
Where a mortgage has more than one part, each individual part is subject to its own ERC. Where a product has expired between redemption and completion of the new loan, the customer must choose a product from the current range and the ERC will still be refunded (subject to completion being within 6 months of the original redemption.
Valuations
In all cases: A new valuation will be carried out for all portability applications, regardless of whether a top-up product is required to determine the new loan to value (LTV) of the lending. A non-refundable standard valuation fee is payable for this, and this fee will automatically be added to the mortgage account and interest charged on this daily. Borrowers can send a cheque for valuation fee at the time the valuation is instructed to avoid being charged interest on the fee.
Loan To Value (LTV)
The LTV is calculated using the total of the outstanding mortgage balance and the amount of any top up borrowing required, compared to a new valuation of the property. Any top up borrowing will be on a capital and interest repayment basis only.
Where the applicant chooses to add the Product Fee to the mortgage at completion, we will not include this in the LTV calculation.
Product Criteria
Self Cert
If the existing mortgage was self certified, in order to have a top up product, the customer must provide income verification to cover the total debt. The top up product should be full status. A straight port (same or lower loan size and LTV) is allowed without income verification - subject to payment history.
Full Status
Where the original mortgage is on a full status product, the portability top up amount must also be on a full status basis, with income verification to support the entire loan.
Proof of Deposits
Builder’s Deposits
These are acceptable subject to:
- For houses & bungalows: the maximum allowable incentive is 5% and the minimum purchase price is £75,000.
- For flats and maisonettes: where the builder’s incentive is cashback or deposit paid, this is acceptable to Accord where the incentive is deducted from the purchase price to calculate the LTV.
On all cases:
- The type of incentive(s) being provided by the builder must be confirmed on the application form and this will be communicated to the valuer prior to inspection.
- The valuer must confirm in the report that they are aware of the type of incentive being provided and the valuation represents the value of the property excluding any incentives.
- The purchase price quoted on the application form must be that which is shown in the contract. Lending is based on the purchase price or value whichever is the lower.
Vendor Deposits
Not accepted.
Tenants Incentive
This is acceptable if the Housing Association postpones their charge over the property in favour of the Accord charge.
Long Service Pay Awards & HM Forces Help to Buy (FHTP) deposits
Not accepted.
Gifted deposits – family member
Cash gifts towards the purchase of a property can be accepted if the individual providing the gift is an immediate family member.
The following would be classed as immediate family members: Mother, Father, Brother, Sister, Child, Grandparent, Grandchild.
Proof of Residency
Acceptable evidence of residency
Acceptable documents to verify residency are:
- Presence on the Electoral Roll
- Utility Bills
- Building Society statements
- Bank statements
- Credit Card Statements
- HM Revenue & Customs Documentation
Existing Mortgage Customers need not provide Evidence of Identity.
The same document cannot be used for Proof of Residency and ID.
All applicants must have resided in the UK for a minimum period of two years immediately prior to the date of the application and all applicants must have evidence that they can currently reside in the UK e.g. Immigration Documentation or passport stamp.
Properties
Unacceptable properties
- No internal bathroom and W.C. or kitchen (unless to be installed prior to completion, cover by way of retention).
- Liable to be subject to clearance or compulsory purchase order.
- Freehold flats and maisonettes.
- Agricultural properties with restrictive covenants.
- Isolated rural properties with restricted access and services.
- Residential property divided into bed sitting rooms.
- Pre-cast re-enforced concrete properties, designated under the Housing Act 1985, part xvi, unless they have been repaired by PRC Homes Ltd, a subsidiary of the NHBC.
- Studio Flats
- Basement flats
- Flats with balcony access i.e. access via covered walkway.
- New build maisonettes/apartments/flats where the LTV exceeds 85%
- New build houses where the LTV exceeds 85%
- Live/Work properties.
- Shared ownership
- Right to Buy
- Ex local authority within any pre-emption period
- Timeshare accommodation
- Holiday Homes
- Dwellings of totally timber construction i.e. not clad with brick, stone etc, including the log cabin/chalet type of construction
- On land/properties with agricultural ties
- Partially built property
- Buy to let (BTL)
Properties Above/Below Commercial Premises
- There are at least 3 storeys in the block of flats.
- Max 85% LTV (newbuild) and 95% (second hand flats).
- Valuer confirms constant and reliable demand (as per current).
Properties with no Kitchen or Bathroom
Properties without a bathroom or kitchen will be treated as unacceptable, however, we could look at them on appeal but would hold a full retention until the work has been carried out to install one.
Granny Flat or Annex
The solicitor acting should confirm that the Granny Flat or Annex would have vacant possession upon completion.
Flats in blocks of over 6 storeys
High quality flats may be considered - these will be referred to the valuer for comments. Studio Flats are not acceptable.
Flying freehold
The valuer must in all cases provide a gross valuation based on the property as a whole and a net valuation exclusive of the flying freehold portion. Lending will be based on the gross valuation however if the solicitor confirms that there are insufficient rights of support and that the applicant cannot enforce the repair and maintenance of the flying freehold portion, lending will be based upon the net valuation figure provided.
Tyneside flats
Accord Mortgages will require a charge to be taken over the freehold in addition to a charge over the leasehold title.
Acceptable Property Location
Properties located in England, Wales, Scotland and Northern Ireland are acceptable. Properties located in the following areas cannot be accepted:
- Isle of Man
- Channel Islands
Purpose of Loan
Purchase or remortgage of main residence
Accord mortgages can only accept applications for the purchase or re-mortgage of an applicant’s main residence. Portability/Additional lending/Transfer of Equity applications must be secured on the customer’s main residence.
Pied a terre/town house
Not accepted.
Purchase for a dependant relative
Not accepted.
Holiday Home
Not accepted.
Properties for rental (Buy to Let/BTL)
Not accepted. For BTL properties please refer to our BTL website.
Remortgages
Acceptable remortgage purposes
All re-mortgage purposes are acceptable except for business capital raising.
At least one applicant must have owned AND lived in the property to be remortgaged for a minimum of 6 months from the date of application.
Capital Raising
Maximum 90% LTV, subject to normal product LTV limits for higher value loans.
Home Improvements
Maximum 90% LTV - without estimates subject to normal LTV limits for higher value loans. For loans above the maximum LTV, estimates are required.
Replacement of existing mortgage, no further borrowing
Maximum 90% LTV, subject to normal product LTV limits for higher value loans.
Replacement of existing mortgage, no further borrowing, second charges to remain
Maximum 90% LTV, subject to normal product LTV limits for higher value loans. The loan is subject to postponement of charge and affordability through income deduction.
Repayment Methods
Types of repayment methods
All new residential mortgage applications can only be submitted on a repayment (Capital & Interest) basis only.
Repayment (Capital and Interest)
The borrower’s monthly payment will include elements of both interest and capital. Provided all payments are maintained the loan will be repaid at the end of the term.
Shared Equity
Not accepted.
Shared Ownership
Not accepted.
Tenure
Freehold, Commonhold, Heritable and Leasehold properties
Freehold, Commonhold, Heritable and Leasehold properties are acceptable.
For leasehold/feudal properties the following must apply:
- There should be at least 60 years unexpired lease remaining at the start of the mortgage application.
- There should be at least 35 years unexpired lease remaining after the expected redemption date.
The ground rent cannot be increased during the first 21 years, unless:
- Where the lease has provisions for ground rent to be increased during the term of the lease, the valuer must be provided with all details.
- The ground rent open ended, i.e. it cannot be increased to an unspecified amount.
- There is not a provision that the lease is forfeit if the lessee becomes bankrupt.
The valuer should also be advised if, as lessee, the applicant could be held responsible for collection and/or payment of the ground rents on neighbouring properties in the event of default of other lessees.
We will use any ground rent or service charges your client has to pay in our affordability calculation. We will need to see either sales particulars, a letter from the estate agent, bank statement (for remortgages) or, a solicitor's letter as proof of the monthly payment.
Terms into Retirement
Where the applicant is within 10 years of retirement (the lower of declared retirement age or age 65), evidence of post retirement income is required. Affordability will be assessed using the lower of either the applicant's current income or their post retirement income to ensure the mortgage will continue to remain affordable.
Where the applicant is over 10 years from retirement, they will be required to declare their anticipated retirement income and a proposal for repayment of the loan should their retirement income not cover the mortgage payments.
Possible proposals could include:
- Sell a second property at/before retirement or at the end of the mortgage term to repay remaining balance
- Use the proceeds from selling the main residence at/before retirement or at the end of the mortgage term to repay remaining balance and downsize
- Make regular overpayments during the life of the mortgage to reduce the term.
If the mortgage term runs into retirement, your client will need to be part of a company or private pension scheme. We will accept as evidence:
Annual pension statement
Pension details supplied by the pension provider
Payslips showing the applicants pension contributions
Transfer of Equity
Removal of a customer
The mortgage account must be no more than 2 months in arrears and the last 3 mortgage payments must have been made, on time and in full.
A credit search will be carried out and income verifications will be requested for the remaining customer. Income should be sufficient to cover the total debt under normal criteria.
Addition of a new customer:
- The mortgage account must be no more than 2 months in arrears and the last 3 mortgage payments must have been made, on time and in full.
- A credit search will be carried out on both borrowers.
- Income verification will be required for both borrowers and income should be sufficient to cover the total debt under normal criteria.
- Proof of residency and Identification will be required for the new borrower.
Valuation
Valuation Fees
Valuation – New Borrowing
Valuation report
A valuation report is valid for a period of three months from the date of issue.
Scottish Valuations
A transcript is required for applications even where the valuation is received from one of Accord’s panel valuers. All valuations and transcripts are only valid for 3 months from the date they are issued. Any report must be no more than 3 months old at the time of offer.
We have a large number of panel valuers in Scotland; however, please check with your dedicated Business Development Manager or Adviser before submitting an application.
Homebuyer reports already carried out
Where the Applicant has already had either a Homebuyers or Building Survey undertaken by a valuer of their choice, this is acceptable providing the valuer is alreadyon our panel and the report is less than 1 month old.
Standard valuation already carried out for another loan
Cannot be accepted.
Security of tenure
Properties with a large acreage of land attached must be valued on a ’house + immediate garden only’ basis (usually up to two acres of land and assuming commensurate with property type).
Accord’s security will be the property and whole acreage of land.
Planning permission
Properties with the benefit of land with planning permission for a separate dwelling will be valued based on what the property would be worth without the planning permission, i.e. the land as garden area only.
New Build Warranty/Certificates
All new properties must have the benefit of a warranty e.g. NHBC, Zurich Municipal etc. Alternatively if a recognised warranty is not available, a Professional Consultant’s Certificate must be obtained, completed by a suitably qualified professional such as a Chartered Architect or Chartered Surveyor.
If the suitably qualified professional is acting on behalf of the builder, they must be willing to recognise the purchaser (applicant) as party to the contract. Regular site inspections must be undertaken and interim/completion certificates issued. The certifying professional must hold appropriate indemnity insurance cover, which must be for at least the value of the completed property and confirm new build supervision forms part of their normal day to day practice.
The maximum LTV for a new build flat/maisonette/apartment is 85%.
Valuation – Additional Lending
A revaluation is required where:
- The new LTV exceeds 50% of the latest valuation (based on the existing borrowing and the proposed additional loan) or
- The last valuation was carried out over 3 months ago (regardless of LTV) or
- The latest valuation type on the account is an External Appraisal (EA) or Desktop (AVM), regardless of LTV or the period since the previous valuation was carried out.
- A non-refundable £70 revaluation fee may be payable on Additional Loan applications.
Re-valuations – Existing Borrower Transfer (EBT)
Our Existing Borrower Transfer product range now takes into account your client’s mortgage balance compared to the estimated value of their property. We calculate this estimated value by using our House Price Index, which is recalculated every quarter. This is the figure we use when assessing your client’s eligibility for our products unless your client requests a revaluation.
Your client can request a revaluation of their property to asceratin the current LTV, if they believe their property’s actual current value is different to the estimated valuation on our records.
Please note that by requesting a revaluation your client is not reserving any of our mortgage products or interest rates. Products can be withdrawn at any time and your client will only be able to choose from a range available once their current valuation is confirmed.
A non-refundable revaluation fee of £70 is automatically added to your client’s mortgage account and interest is charged daily. If your client doesn’t want to be charged interest on this amount they can send a cheque for £70 at the time the revaluation is instructed. Alternatively, they can contact our Existing Customer Team to pay the fee by either debit or credit card.