Borrowers can now access up to £1.5m on residential mortgages at 75 per cent LTV, which was £1m previously.
For BTL cases, up to £1m can be borrowed at 75 per cent LTV, whereas before it was £500,000 at 75 per cent LTV.
The maximum LTV for BTL loans is now 80 per cent, up from 75 per cent LTV.
The mutual has also introduced a split approach to BTL affordability, which will apply a different interest coverage ratio (ICR) depending on whether the borrower is on a low or high tax rate.
Lower rate tax payers will have an ICR of 125 per cent at 5.5 per cent or 125 per cent at 4.5 per cent if the product is fixed for five years.
Higher rate tax payers will be subject to an ICR 145 per cent at 5.5 per cent or 145 per cent at 4.5 per cent if the product is fixed for five years.
Franco Di Pietro, head of intermediary mortgages at the mutual, said: “We’re always looking to review and enhance our underwriting approach across all areas in response to broker feedback. We take a common sense approach to lending and believe these changes will allow us to better support brokers and their clients as they move up the property ladder.
“To further enhance our lending policy we’re also taking a new approach to affordability for BTL clients, recognising the split between lower and higher rate taxpayers. I’m confident these criteria changes along with our continued flexible approach to underwriting will give customers excellent new borrowing options.”
Accord Mortgages releases BTL products with no ERCs
Accord Mortgages has released a range of five-year fixed BTL products with no early repayment charges (ERCs).
The range is available to first-time landlords, existing landlords and portfolio landlords, and will be available from Monday.
It includes a 65 per cent LTV option with a rate of 2.39 per cent, a 75 per cent LTV option at 2.93 per cent and an 80 per cent LTV option with a 3.99 per cent rate.
The products come with a £1,995 fee, free standard valuation and £250 cashback on purchase. Remortgagors can choose cashback or the lender’s remortgage legal service.
Simon Garner, Accord’s BTL mortgage manager, said: “We know landlords value increased flexibility when managing their properties so we’ve designed this new range to offer just that.
“Whether they want to make unlimited overpayments or have the option to transfer to a new product early, we expect these products to be a welcome addition to what’s currently a very small offering in the market.”
