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!