Mortgage News
Accord tweaks interest-only criteria for sale of property
Accord mortgages, the intermediary arm of Yorkshire Building Society, is set to cut its interest-only LTV from 75% to 50% where sale of property is listed as the repayment vehicle.
The changes will take effect from 2 September. Accord will continue to lend up to 75% LTV on all other interest-only deals which include alternate repayment vehicles.
A spokesperson for the lender said: “In relation to interest-only lending, we agree with the Financial Service Authority’s position that for some customers it is clearly a sensible option. We want to provide interest-only lending and manage the risks, at the same time as recognising the potential benefits for borrowers.
“As a responsible lender, our approach has been to monitor the market and carefully consider the risks and benefits.
“We continue to support interest-only lending up to 75% LTV and ensure we have repayment methods in place which suit each individual borrower. If that includes selling a main residence, then the current LTV of that property must be no more than 50%.”
