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Accord Mortgages removes secured debt cap for resi and BTL mortgages

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  • 09/06/2021
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Accord Mortgages removes secured debt cap for resi and BTL mortgages
Accord Mortgages is removing the cap on the amount of secured debt customers can consolidate on remortgaging to improve affordability for residential and buy-to-let clients.

 

According to a broker’s note, the change is effective from today and there will be no change to the cap on unsecured debt which currently stands at £50,000.

The lender also confirmed that the maximum loan to value (LTV) for residential mortgages would be 80 per cent and 75 per cent for buy-to-let.

For first-time landlords the maximum LTV would be up to 80 per cent, in order to support borrowers with smaller deposits.

It added that restrictions such as maximum loan size of £500,000 for BTL mortgages over 75 per cent and new build and debt consolidation LTVs would still apply.

For both secured and unsecured debts the limit on the number of debts is set at 10.

Accord Mortgages’ senior manager for proposition development Nicola Alvarez said that the change supported its “approach to common sense lending” and would allow them to help more borrowers.”

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