In a bid to consolidate its new build lender status, Help to Buy range rates start at 1.8% fixed for two years for borrowers with a 5% deposit and the 20% equity loan.
Buyers with a larger deposit of 20%, on top of the 20% loan, can fix to a market-leading deal of 1.57%.
Jeremy Duncombe, director of Accord (pictured), told Mortgage Solutions the lender wants to see the Help to Buy scheme extended past its current expiry data of 2021.
He warned the market is “not ready” for the scheme to be withdrawn and would slow if this were to happen too soon, as builders would likely stop investing affecting the number and types of properties being built.
The lender’s Help to Buy range is currently exclusive to brokers and not available through the lender’s direct to consumer brand Yorkshire Building Society.
In the Help to Buy remortgage market, Duncombe acknowledges there “needs to be more choice” for borrowers, however, Accord is not offering refinancing to borrowers who have not paid off their equity loan in full.
Duncombe said it’s one of the things the lender would look at for the future.
A new build specialist
As well as launching Help to Buy, Accord is increasing the LTV to 90% on all new build mortgages, so borrowers can take the deals against flats and houses.
The lender has also created a specialist new build underwriting and telephone team to support brokers.
Duncombe said there are specialist new build brokers in the market who understand the product niches, and as a lender it needs to offer the same.
He added: “We’re not just launching a Help to Buy proposition, we’re launching into the market as a new build player.”
Duncombe wants the combination of the initiatives, including one day valuations, to have a “big impact”.
He added: “We understand that the new-build market is different, has a number of different challenges and that it requires a dedicated service for brokers.
“This might be by providing early certainty on whether we’ll lend on a particular development, or ensuring day one instruction of valuations.”