I was delighted to see that Accord Mortgages have entered the 95% mortgage arena, but fairly gobsmacked to find that the products don't form part of the Government’s Help to Buy scheme or require any family guarantee.
Accord Mortgages are part of Yorkshire Building Society and traditionally lend to applicants with an “excellent credit history.” As a result of their cautious lending, Accord boasts an excellent mortgage book, with few accounts in arrears. This has now enabled them to offer mortgages in what is considered the risky end of the market.
The Government effectively “underwrite” the loans on The Help to Buy Scheme, but Accord has decided to take on the risk themselves, without relying on Government support.
The rates are almost too good to be true! The 2 year fixed rates start at 4.69% with a £845 product fee and the 5 years start at 5.09%. There are other variations on the theme with £500 cash back and free valuations
Accord’s criteria and credit score requirements are strict, don’t even think about applying unless you have a stable residential history (consistently on electoral roll and have been at current address for some time), Consistent employment history and no adverse credit whatsoever!
I think it is right that criteria should be tight; a return to reckless high percentage lending is no help to anyone.
Anyway, well done Accord, let’s hope that where they lead, others will follow!
Recent posts
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
UK 2024 Autumn Budget: Housing
21 days ago
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
Talking about money with kids
28 days ago
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
Labour Autumn Budget Predictions: Housing
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
How can I look after my mental health?
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!
First Time Buyer to do List
4 Oct 2024
Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started.
Bank of England Holds Base Rate at 5%
20 Sep 2024
With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.
More information
Trusted by
