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
The chancellor will deliver her second budget this autumn. Due to slow economic growth and high inflation, the government need to manage a £40 billion shortfall in public finances. There have already been reports about changes to taxes including income tax and capital gains tax.
Landlords could face a new tax this autumn
3 days ago
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
26 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
28 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
More information
Trusted by
