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Accord restarts physical valuations and increases LTVs to 85 per cent

  • 13/05/2020
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Accord restarts physical valuations and increases LTVs to 85 per cent
Accord Mortgages is to restart physical valuations and increase its maximum loan to value (LTV) to 85 per cent on residential mortgages from Friday.


The lender is also raising its maximum property value for residential lending from £1m to £2m.

There will be 11 new fixed-rate residential purchase products available at either 80 or 85 per cent LTV.

This includes a two-year fixed rate at 1.87 per cent at 80 per cent LTV with £495 fee, £500 cashback and free valuation, and five-year fixed rate at 2.16 per cent at 85 per cent LTV with £495 fee, £500 cashback and free valuation.

All new applications will be subject to a physical valuation where possible.

The reinstatement of physical valuations also means that both residential and buy-to-let applications on flats and non-standard construction can be accepted once again.

New build lending is not included in these changes.

Accord warned appointments will be reduced as specific guidelines are adhered to, which could impact time frames.


Controlled manner

Since the end of March, Accord had limited lending to a maximum of 75 per cent LTV in response to the government restrictions on physical property valuations, with desktop valuations and automated valuation models (AVM) instead being used.

Jeremy Duncombe, director of intermediary distribution at Accord Mortgages (pictured), said: “We have the desire and capacity to lend and our priority has always been to ensure we can offer the widest range of products with the highest level of service.

“Rather than reduce restrictions too early and leave applications in the pipeline, we are now in a strong position to accept cases at a higher LTV and property value. This provides increased choice to brokers and their clients as well as offering much-needed support to the market.

“Following the prime minister’s address on Sunday, our valuation partners are recommencing physical valuations this week in a controlled manner to reduce any potential risks.

“We are working closely with them to process any new applications as well as review our current pipeline, which we acknowledge will take time.

“We will continue to monitor the situation and review our range, reintroducing products and criteria when it is prudent and feasible to do so.”


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