Accord Mortgages has overhauled its affordability assessment model, allowing it to lend up to 15% more to homebuyers — equivalent to an average increase of £37,000 per mortgage.
The change follows updated regulatory guidance that permits lenders to apply lower stress interest rates when determining whether borrowers can still afford their repayments if rates rise in the future. Stress rates are a key part of the mortgage application process, simulating a scenario in which interest rates increase to assess how resilient a borrower’s finances might be.
The intermediary-only lender said the revised affordability model will apply to all new lending and is expected to open up greater borrowing potential for more customers.
Jeremy Duncombe, managing director of Accord Mortgages, said: “Accord already offers market-leading innovation and flexibility to help borrowers overcome today’s affordability challenges, but we’re always looking for new ways of applying the common-sense approach we’re known for.
“We really welcome the regulator’s latest guidance on aspects like the stress interest rates we have to apply to our mortgage decisions.
“We’ve been able to review our already-competitive affordability model in light of this, combined with changes in market and economic conditions, which means we can help even more people achieve their homeownership goals.”
The latest update is part of a broader series of measures introduced by Accord in recent months to support buyers navigating a still-challenging property market. These include a new cashback range for first-time buyers, with up to £6,250 available to help cover the rising costs of buying a home, including higher stamp duty charges.
The lender has also expanded eligibility for its £5k Deposit Mortgage, which now includes flat purchases. In addition, its Boost LTI (loan-to-income) product allows access to higher borrowing levels, subject to criteria.
