Accord said the changes would help first-time and next-time buyers achieve their homeownership goals.
The changes significantly increase the amount it lends to people borrowing over 75% of a home’s value, and this will assist those buying in “hotspots” where house prices have risen rapidly, the firm said.
Looking at different LTV tiers, the maximum loan size for people borrowing more than 75% and up to 85% LTV is going up to £2.6m. This is a rise of £2m for non-new-build properties and from £1m for new-build properties.
The maximum loan for all property and borrower types, at more than 85% and up to 90% LTV, is increasing from £750,000 to £1m.
Accord noted that the maximum loan for all borrower and property types other than new-build flats, at more than 90% and up to 95% LTV, is changing from £600,000 to £750,000.
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The maximum loans below 75% LTV and non-new build at more than 95% and up to 99% LTV remain unchanged at £5m and £495,000 respectively.
Accord added that it would be increasing the maximum LTV for new-build houses from 90% to 95% LTV.
Andrew Calder, strategic partnerships and propositions manager at Accord, said: “House prices rising by around a quarter over the past five years has made it harder and harder for people – and especially first-time buyers – to access the size of mortgage they need.
“Meanwhile, costs have gone up so significantly in some areas of the country, it’s hard for borrowers to secure the kind of mortgage they need. This means they either have to make up for this with a much bigger deposit than the norm, which can put many out of the race, or they face waiting years to realise their homeownership dreams while they save up more.”
He continued: “At the same time, many buyers want to purchase new-build houses because of their energy efficiency and relatively low maintenance requirements. Therefore, as well as increasing our maximum loan sizes for new-build and non-new-build homes, we have lowered our minimum deposit requirements for new builds to make this a possibility for more people.
“At Accord, we are always looking at opportunities to help remove blockers for borrowers, and help them achieve their homeownership goals.”
Accord recently lowered its stress rate, which it said allowed it to lend 15% or £37,000 more on average.
