Accord enhances interest-only mortgage criteria

Accord Mortgages has improved its interest-only criteria to offer brokers more options for their clients.

As part of the changes, Accord has added the sale of another UK property as new acceptable repayment strategy.

The lender will also allow the use of pension lump sum as a repayment strategy where the mortgage term ends after the applicant reaches the age of 55 and is eligible to receive their pension lump sum.

In addition, Accord is increasing its LTV limits where the repayment strategy is sale of the mortgaged property from 50% to 60%, while increasing the minimum equity requirement for this repayment strategy from £200,000 to £250,000 (£300,000 in London).

The maximum LTV for part interest-only/part repayment will increase from 75% to 85%, while the maximum LTV for the interest-only element will remain at 75%.

Nicola Alvarez, senior manager for new propositions at Accord Mortgages, said: “We’re pleased to be expanding our interest-only options to provide greater flexibility for brokers and their clients.

“This is the latest example of how Accord is continually enhancing its criteria to support brokers in helping their clients to find solutions that meet their changing needs.”