Accord Mortgages has announced a substantial uplift to its maximum loan amounts, with increases of up to £1.6 million, alongside a significant policy change allowing 95% loan-to-value (LTV) lending on new-build houses.
The most notable increase sees the cap on loans between 75% and 85% LTV rise to £2.6 million. Previously, the limit stood at £2 million for non-new build homes and £1 million for new builds.
At the 85% to 90% LTV tier, the maximum loan rises from £750,000 to £1 million, while loans between 90% and 95% LTV will now be available up to £750,000 – up from £600,000. Limits for loans below 75% LTV and those above 95% remain unchanged.
In a further shift, Accord is increasing the maximum LTV on new-build houses from 90% to 95%, a change the lender says is designed to support demand for energy-efficient and low-maintenance homes.
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-newbuild 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.”
The lender has also recently revised its affordability model and the stress rate used when assessing applications. It has additionally extended eligibility for its £5k Deposit Mortgage – which allows borrowing of up to £500,000 with just a £5,000 deposit – to include flats.
