Residential  

Accord to repeat two-day 90% LTV offering

Accord to repeat two-day 90% LTV offering
 Credit: Chris Ratcliffe/Bloomberg

Accord Mortgages will be offering another limited release of 90 per cent loan-to-value products for first-time buyers.

Two house purchase mortgages will be available on Monday (September 21), from 9am, until 8pm on Tuesday (September 22).

Both products are five-year fixed rates, with a £495 product fee and free valuation.

A rate of 3.59 per cent will be available for loans up to £500,000, and a higher rate of 3.69 per cent will be available for loans between £500,001 and £600,000.

At least one applicant must be a first-time buyer, which the lender defines as someone who has never owned a property or held a mortgage before.

Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Enabling buyers to secure their first home is crucial to market growth during the pandemic and since March we’ve helped more than 4,000 young people take that first step on the property ladder.

“Thanks to our underwriting team working incredibly hard to process the applications and the support we’ve received from brokers submitting well-packaged cases and using our online portal for updates, we’ve been able to manage our capacity and return to this currently underserved market in record time.

“We received really positive broker feedback for the last launch and whilst we know a more sustained approach is the ideal, by offering these highly sought-after products for shorter periods, we are confident we can maintain service levels whilst supporting first-time buyers on a more regular basis.”

Accord previously re-entered the first-time buyer 90 per cent LTV market for two days last week (September 7).

In July its parent company, Yorkshire Building Society, predicted that lenders would come “in and out” of the 90 per cent LTV tier for the foreseeable future.

The building society said it remained “keen to lend in this part of the market and will continue to do so where service levels allow”.

Since the pandemic started lenders have been coming in and out of the high LTV market, with some imposing restrictions on the number of applications accepted each day, limited launches, and product withdrawals after high demand.

For example Nationwide has capped any gift towards a deposit at 25 per cent of the deposit amount for lending above 85 per cent LTV, while also limiting those products to a maximum term of 25 years. 

chloe.cheung@ft.com

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