Accord MD on returning to the 95% LTV market

Accord MD on returning to the 95% LTV market
Jeremy Duncombe, managing director of Accord Mortgages

Accord Mortgages received a “good flow” of new decisions in principle when it returned to the 95 per cent LTV market last week, according to its managing director.

The intermediary-only lender returned to the 95 per cent LTV market on Wednesday (March 17) with a five-year fixed rate for first-time buyers.

Jeremy Duncombe (pictured), managing director of Accord Mortgages, said the lender saw a real and definite demand for lending at 95 per cent LTV when it returned to the market.

Speaking to FTAdviser on the day after the product’s launch, Duncombe said: “Yesterday was the first day and I don’t think there were lots of customers who were sat there waiting for the 95 per cent market to open. I think it took a number of people by surprise.

“So what we saw was a real good flow of new decisions in principle come through. So a real demand, definite demand there that we saw and those decisions in principle will turn into cases.

“Even yesterday we saw a really good input of actual applications, so really pleased that we’re able to get those applications through.”

In announcing Accord’s return to the 95 per cent LTV market last week, Duncombe warned the product may be withdrawn at relatively short notice, to balance demand with the ability to offer the level of service expected by brokers and clients.

But Duncombe said: “We hope we won’t have to do it, and the fact that another lender [Bank of Ireland] has come in after us does help as well and give us confidence.”

Both Accord Mortgages and Bank of Ireland launched their 95 per cent LTV products before the government’s mortgage guarantee scheme, which was announced in the Budget, opens for new mortgage applications next month.

Duncombe said: “From our point of view, we don’t think we’ll use the scheme at this stage.”

He added: “We feel we’ve got the capital and the liquidity and the risk appetite to do it ourselves.

“So we’re really comfortable to do it ourselves, but the government scheme does I think give confidence - first of all, to us that more people will join us, and secondly to the market that more lenders will be following.”

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