Accord increases maximum loan size by up to £1.6m

Accord is increasing its maximum loan amount by up to £1.6 million and increasing its maximum LTV for new build houses from 90% to 95%.

The lender is significantly boosting the amount it will lend to people borrowing over 75% of their home’s value.

The maximum loan size for people borrowing more than 75% and up to 85% LTV is increasing to £2.6 million. This is an increase from £2 million for non-new build properties, and from £1 million for new build properties.

The maximum loan for all property and borrower types, at more than 85% and up to 90% LTV, is going up from £750,000 to £1 million.

The maximum for all borrower and property types other than new build flats, at more than 90% and up to 95% LTV, is changing from £600,000 to £750,000.

The maximum loans below 75% LTV and non-new build at more than 95% and up to 99% LTV remain unchanged at £5 million and £495,000 respectively.

Other recent changes Accord has introduced to help borrowers overcome affordability challenges include updating its affordability model and the stress rate it applies to mortgage applications and expanding its £5k Deposit Mortgage to flat purchases.

Andrew Calder, strategic partnerships and propositions manager at Accord, said: “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.

“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.

“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-new build 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.”