Accord Mortgages has relaxed key elements of its lending criteria in a move it says will help more underserved borrowers gain access to home ownership.

The intermediary-only lender will now allow applicants without indefinite leave to remain (ILR) to borrow up to 90% loan-to-value (LTV), provided that at least one applicant has a minimum income of £50,000.

This marks a significant shift from the previous cap of 75% LTV. Where the minimum income threshold is not met, the 75% maximum remains in place. For joint applications where one party has ILR, lending at up to 95% LTV continues to be available.

Accord has also updated its treatment of Universal Credit, which will now be accepted as a source of income in affordability assessments, provided at least one applicant has earned income. 60%t of the benefit, excluding housing allowance, service charges and child element payments for children aged 11 or over, can now be factored into calculations. Evidence must be supplied via the most recent Award Letter.

Nicola Alvarez, head of strategic partnerships and propositions at Accord, said: “We’re so pleased to make these changes, which mean that we’ll be able to help more underserved borrowers to achieve their home ownership dreams, whether they are buying their first home, moving up the property ladder, or remortgaging.

“Enhancing our criteria for those without indefinite leave to remain means that we can support them in achieving their home ownership aspirations, building a more stable future for themselves and their families.

“Accepting Universal Credit as part of our affordability assessment further supports our commitment to common-sense lending, opening up opportunities for brokers whose clients may be finding it more challenging to get the mortgage they need.”

Accord said the changes demonstrate its commitment to “common-sense lending” and to broadening access to the mortgage market at a time of complex affordability pressures.