You are here: Home - News -

Accord enters interest-only mortgages with broker exclusive

  • 27/11/2017
  • 0
Accord enters interest-only mortgages with broker exclusive
Accord is launching an interest-only repayment offering exclusively for brokers from today, Mortgage Solutions understands.

The lender, which is part of Yorkshire Building Society, did not offer a residential interest-only option until today, and is also extending it to its offset mortgages.

To meet the new criteria, Accord requires borrowers to demonstrate they have an acceptable repayment strategy in place at the end of the mortgage term, which could include existing endowments or savings and investments.

Product details include:

  • Maximum 75% loan to value with a qualifying repayment vehicle
  • Sale and downsize maximum of 50% interest-only with up to 25% repayment (minimum of £200,000 equity on application)
  • No minimum income
  • No income restrictions with affordability up to five times household income
  • Senior underwriters allocated to interest-only applications


Sensible lending

Coreco director Andrew Montlake said: “This is another good move from Accord who have been a strong lending partner for brokers in general this year.

“There has always been a place for sensible interest-only lending and this change will help to give borrowers more choice.”

Accord Mortgages managing director Charles Canning (pictured) said: “Demand for interest-only mortgages is increasing and for borrowers who have made an informed decision that this repayment method best meets their needs, and who have a clear strategy to repay the loan, we understand the additional flexibility it can provide.

“As a responsible lender we have designed a lending policy that reflects the needs of borrowers and meets those needs in a financially sustainable way. We’re confident the introduction of interest-only options will be welcomed by brokers and borrowers looking for choice in the market.

“To help brokers place interest-only cases with us and ensure efficient turnaround times for clients we have dedicated interest-only underwriters ready to answer any questions,” he added.

Legal & General Mortgage Club director Jeremy Duncombe added: “Interest-only is an important option for the right customers who have received appropriate advice from a mortgage broker.

“Our recent Value of a Broker research demonstrates the importance of speaking to an intermediary, and it’s great that Accord place similar value on their role. By introducing interest-only, Accord continues to develop their range and offer more choice for the intermediary market.”


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
For rent sign stuck in a patch of emerald green grass
Rental market dips in autumn slowdown

Rent rises and rental supply both slipped in October indicating the rental market may be on the brink of a...