Residential  

Accord to re-enter 90% LTV market for three days

Accord to re-enter 90% LTV market for three days
 Credit: Chris Ratcliffe/Bloomberg

Accord Mortgages will be re-entering the 90 per cent LTV market again with products for both homemovers as well as first-time buyers.

The lender will be launching a limited release of 90 per cent LTV products on Monday (November 2) at 9am, which will be withdrawn on Wednesday (November 4) at 8pm.

Both products are five-year fixed rates, with a £995 product fee and free valuation.

A rate of 3.79 per cent will be available for loans up to £500,000, and a higher rate of 3.89 per cent will be available for loans between £500,001 and £600,000.

Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “We’ve had a positive response to our previous releases for first-time buyers, but we know there is a need to support a broader range of purchase customers and for products to be available for a longer period of time.

“During the last month, we’ve been able to improve our capacity by increasing the options to self-serve and adding resource to our underwriting team. As a result, we are now in a position to return to the market and offer this wider proposition for an extended period."

He added: “There have been limited high LTV options for movers during the last few months so we’re anticipating a high demand for these products.

"After this pulse, we’ll assess the impact of the products and the competitive conditions before returning again when we can.”

Accord has previously offered 90 per cent LTV products over two-day periods to first-time buyers only.

The lender said it hopes to help more customers and support the wider market by making the products available for three days and to homemovers as well.

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.

Aaron Strutt, product and communications director at Trinity Financial, commented: “We need some of the other lenders to come back so they don’t have to offer a three-day period.

“Other lenders we have spoken to have said they’re considering returning to 90 per cent LTV, but this is not something we have seen yet.”

chloe.cheung@ft.com

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