Accord Mortgages has announced it is increasing its maximum LTV to 85% on residential purchase products and is also raising its maximum property value for residential lending from £1m to £2m.
Lending was limited to a maximum of 75% LTV at the end of March as a response to the government restrictions on physical property valuations.
Since then, the intermediary lender has used desktop valuation or an automated valuation model (AVM) on all new and pipeline applications and suggested it is now confident it can increase the maximum LTV and maximum property value.
From 8am on Friday 15 May, Accord announced there will be 11 new fixed-rate residential purchase products available at either 80% or 85% loan-to-value (LTV). For both residential purchase and remortgage Accord will lend up to £1.5m at 75% LTV and up to £1m at 85% LTV.
The lender also suggested the reinstatement of physical valuations means that both residential and buy-to-let (BTL) applications on flats and non-standard construction can be accepted again, but that new build lending is not included in these changes and is being considered separately.
Accord director of intermediary distribution, Jeremy Duncombe, commented: “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 as well as offering much-needed support to the market.
“Following the Prime Minister’s address on Sunday (10 May), our valuation partners are re-commencing 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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