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Accord allows product transfers on payment holidays and cuts LTVs

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  • 01/04/2020
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Accord allows product transfers on payment holidays and cuts LTVs
Accord has stopped new buy-to-let purchases and cut down its maximum loan-to-value (LTV) for residential purchase and remortgage, and buy-to-let remortgages as a result of restrictions put in place due to the Covid-19 outbreak.

 

The lender has also clarified its product transfer policy for borrowers who are taking or may have to take payment holidays because of the situation.

Its website noted that borrowers who are in a payment holiday will be able to conduct product transfers providing they are not in arrears and meet the usual criteria.

Borrowers who take a payment holiday will not have their future ability to make a product transfer affected if they are not in arrears and continue to meet usual criteria.

The lender is also working on an automated online product transfer request for brokers to complete for clients in a payment holiday, but has supplied a manual request form until that is resolved.

For borrowers who are just about to complete their mortgage, Accord added that it will allow them to take a payment holiday on completion.

 

Lending limits

Accord has also reduced its maximum loan to value across its lending range, with residential purchases limited to 75 per cent LTV and residential remortgages at 85 per cent.

Buy-to-let purchases are not being conducted while buy-to-let remortgages, are allowed at a maximum LTV of 65 per cent.

Due to the inability to carry out physical valuations it is also unable to accept applications on: new build; flats; properties in Northern Ireland; non-standard methods of construction; and properties valued at more than £1m.

Most pipeline cases will have these rules applied to them, the lender said.

Pipeline cases where desktop valuations or automated valuation models (AVMs) cannot be used will remain in the pipeline until a physical valuation can be carried out.

Accord said it will be in contact with customers shortly to let them know whether it can proceed with their application.

 

Identification

Accord is continuing to complete an electronic ID check for all applications and for any applications that do not pass this check it will request copies of documents, but as per its standard policy, these do not need to be certified.

Given the circumstances, it is temporarily allowing acceptance of copied documents where the broker has not seen the original, for example where the customer has taken a copy or photo and sent that to the broker electronically.

If brokers have any queries they are urged to contact their business development manager or use the webchat service.

 

Clear guidelines

Accord Mortgages director of intermediary distribution Jeremy Duncombe, said: “Given the nationwide restrictions on valuations, we have reviewed our policies to ensure, where we can find an alternative to a physical valuation, we can continue lending on new applications and process those currently in the pipeline.

“We know brokers are under a lot of pressure at the moment, so we hope these clear guidelines will enable brokers to provide the most accurate information to their clients and allow our underwriting teams to progress the cases which fall within the guidelines as quickly as possible.”

The changes also apply to business through parent company Yorkshire Building Society.

 

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