Accord Mortgages reviewed

Who are Accord Mortgages?

Accord Mortgages is a UK-based mortgage lender that was founded in 2002. It is part of the Yorkshire Building Society group, which is the second-largest building society in the UK.

Accord Mortgages offers a range of mortgage products, including fixed-rate mortgages, tracker mortgages, and buy-to-let mortgages.

Accord Mortgages has over 90,000 customers and has generally received positive feedback from its customers. In the 2021 UK Finance Mortgage Lenders’ benchmarking survey, Accord Mortgages was ranked highly in several categories, including overall satisfaction, lender relationship, and service delivery.

The survey also found that the lender had a net promoter score (NPS) of 59, which is considered to be a very high score.

An overview of Accord Mortgages

Accord Mortgages is a UK-based mortgage lender that provides residential
mortgages and mortgages.

However, it is important to note that Accord Mortgages is only available through
intermediaries, which means that customers cannot apply for a mortgage directly
from the lender.

One of the features of Accord Mortgages is that they offer income multiples of up to 5.5
times the customer’s income.

This is higher than what some high street lenders offer, which typically ranges from 4.5 to 5 times the customer’s income.

Accord Mortgages is also known for its flexibility in dealing with customers who have adverse credit.

They may be able to offer more flexible terms compared to some high street lenders, although this may vary depending on individual circumstances. Accord Mortgages is also known for its bespoke underwriting process, which takes into account individual circumstances rather than relying solely on automated processes.

The lender is also known for its common-sense approach to underwriting, which means that it may be more willing to consider individual circumstances when making a lending decision.

What is the maximum loan amount offered by Accord mortgage?

Accord, a lending institution, typically allows customers to borrow up to 5 times their gross salary. This means that if you earn a gross salary of £60,000, you may be eligible to borrow up to £300,000 from Accord.

However, it is important to note that not all customers are eligible to receive the maximum amount of 5 times their salary. In some cases, customers with high incomes may be considered for a higher income multiple of up to 5.5 times their salary.

It’s crucial to understand that the amount you are eligible to borrow is not solely determined by your income multiple but also by your individual circumstances. Therefore, the exact amount available to you may vary depending on various factors such as your credit score, employment history, and financial situation.

How long does it take to process an Accord Mortgage

The length of time it takes for Accord Mortgages to underwrite a mortgage can vary depending on several factors, such as the complexity of the application and the volume of applications being processed. 

In general, Accord Mortgages aims to provide a decision in principle within 24 hours of receiving a complete application. After that, it typically takes between two to three weeks to complete the underwriting process and issue a formal mortgage offer.

How much can I borrow with Accord Mortgages?

Accord Mortgages typically assesses mortgage applications based on a multiple of the applicant’s income, with the usual range being between 4.5 to 5 times their income.

However, in certain cases, Accord may consider up to 5.5 times the applicant’s income. It’s important to note that the higher income multiples are typically reserved for individuals with higher salaries.

Accord Mortgages interest rates

Accord Mortgages typically offers competitive rates on their mortgage products.

While their rates may be slightly higher than some of the “big six” lenders, they are still competitive within the mortgage market.

What are the pros and cons of using Accord Mortgages?

Pros

• Generous loan-to-income ratios

• Consider applications that are outside of the policy

• Bespoke underwriting

• Wide range of products and criteria

• Lenient towards light-adverse

• Cashback deals

• Quick turnaround times

Cons

• Not available direct, only through intermediary Channels.

• Do not lend if you have been declared bankrupt or had any outstanding CCJ’s within the last 6 months.

What types of mortgage does accord mortgages offer?

Accord Mortgages offers a variety of mortgage products, including fixed-rate mortgages, tracker mortgages, offset mortgages, variable-rate mortgages, capital repayment mortgages, and interest-only mortgages.

These mortgages are available for both residential properties and buy-to-let properties.

Offset mortgages

Accord offset mortgages are a type of mortgage product offered by Accord Mortgages, where the borrower’s savings are used to offset the amount of interest charged on their mortgage.

Essentially, the borrower can link their savings account(s) to their mortgage, and the amount in their savings account(s) is subtracted from the outstanding mortgage balance before the interest is calculated.

For example, if a borrower has a mortgage balance of £200,000 and £20,000 in savings, the interest will only be charged on £180,000. This means that the borrower pays less interest overall, and can potentially pay off their mortgage sooner.

Fixed term mortgages

Accord typically provides fixed-rate mortgages for 2, 3, or 5-year periods, although they have also offered fixed rates for other periods, such as 10 years.

Tracker mortgages

Accord Mortgages offers a range of tracker mortgages, which are a type of variable rate mortgage where the interest rate tracks an external benchmark such as the Bank of England base rate.

The specific types of tracker mortgages offered by Accord Mortgages may vary over time, but they generally include options such as:

• Base rate tracker mortgage
• Capped rate tracker mortgages
• Discounted tracker mortgages

Buy-to-let Mortgages

Accord Mortgages provides buy-to-let mortgages for residential purchases by individuals but not for purchases made through limited companies. There is no minimum income requirement for these mortgages, but borrowers must provide a minimum deposit of 25% of the property’s value.

Accord Mortgages’ buy-to-let mortgages are available on both capital repayment and interest-only repayment terms. This gives borrowers the flexibility to choose a repayment plan that best suits their individual financial circumstances and investment goals.

When applying for a buy-to-let mortgage from Accord Mortgages, borrowers will need to undergo an affordability assessment based on the rental income they are expected

Does Accord Mortgages offer interest-only mortgages?

Yes, Accord Mortgages offers interest-only mortgages, subject to certain criteria. Here are some of the key criteria for Accord Mortgages interest-only mortgages:

Loan to Value (LTV): The maximum LTV for interest-only mortgages with Accord Mortgages is typically 75%, although this may vary depending on individual circumstances.

Repayment Vehicle: Accord Mortgages requires customers to have a suitable repayment vehicle in place to repay the capital at the end of the mortgage term. This could include an investment plan, savings plan, or other asset that is likely to generate sufficient funds to repay the loan. Accord Mortgages may consider the sale of the customer’s main residence as a repayment vehicle for an interest-only mortgage, subject to certain criteria.

If the customer plans to sell their main residence to repay the loan at the end of the mortgage term, they will need to provide evidence that the property is likely to be sold for a sufficient amount to cover the outstanding balance of the mortgage.

Affordability: As with all mortgages, Accord Mortgages will assess the customer’s affordability and ability to repay the mortgage, both during the interest-only period and when the capital repayment begins.

Eligibility: Interest-only mortgages with Accord Mortgages are typically available to customers who are employed or self-employed.

What is the application process for an Accord Mortgage?

Accord Mortgages’ application and underwriting process involves several stages.

Here is a general overview of the process:

Application: The customer, through an intermediary, submits an application to Accord Mortgages, providing information about their personal and financial circumstances, the property they wish to purchase, and the type of mortgage they are seeking.

Document Verification: Accord Mortgages will then verify the documents submitted by the customer, including payslips, bank statements, and ID. They may also carry out a credit check to assess the customer’s creditworthiness.

Valuation: Accord Mortgages will instruct a valuation of the property to assess its value and ensure that it is suitable as security for the loan.

Underwriting: Once the documents have been verified and the valuation has been completed, the underwriting process begins. This involves a thorough assessment of the customer’s financial circumstances and ability to repay the loan. Accord Mortgages’ underwriters will also consider factors such as the customer’s credit history, employment status, and any other relevant information.

Decision: Based on the information gathered during the application and underwriting process, Accord Mortgages will make a decision on whether to approve the mortgage application. They may also offer the customer a mortgage product with specific terms and conditions that are appropriate to their circumstances.

It’s worth noting that Accord Mortgages has a reputation for taking a more bespoke and flexible approach to underwriting, which means that they may be more willing to consider individual circumstances and make lending decisions based on common sense as well as strict criteria.

What mortgage terms do Accord Mortgages offer?

Accord Mortgages provides mortgage options that extend over a maximum term of 40 years, which is a more extended period compared to many other lenders.

This extended repayment period allows customers to benefit from more affordable monthly repayments, which may be particularly helpful for those with a limited budget. Furthermore, Accord Mortgages is more generous than many other lenders in terms of their lending policies.

While many lenders cap their lending age at 70 or 75, Accord considers lending until age 80 based on the customer’s earned income. This means that even if you are approaching state retirement age, you may still be eligible for a mortgage with Accord Mortgages, subject to meeting their lending criteria.

How long are accord mortgage offers valid for?

Accord Mortgages typically provide offers that remain valid for a period of 6 months. This means that if you receive an offer from Accord, you will have 6 months from the date of the offer to accept it and proceed with the mortgage application process.

Does accord mortgages allow overpayments?

Accord Mortgages typically offers a feature that allows borrowers to make overpayments of up to 10% of their mortgage balance annually without incurring any penalties. However, if you exceed the 10% threshold, you may be required to pay an early repayment charge.

Accord Mortgages also offers tracker products that may have more flexible overpayment facilities. These tracker products can provide additional benefits, such as the ability to make more significant overpayments without incurring early repayment charges.

What happens when my accord mortgage deal ends?

At the end of a mortgage product deal with Accord, the mortgage will typically revert to the lender’s Standard Variable Rate (SVR), which may be higher than the rate you were previously paying.

The SVR is the interest rate that lenders typically charge their customers who are no longer on a fixed or discounted rate deal. However, you may have the option to choose a new mortgage product with Accord or remortgage with another lender.

It’s important to note that you can typically start arranging a new product or remortgage up to 6 months in advance of the deal ending. This is known as the “product transfer window” and it’s a good idea to start looking at your options before your current deal ends, so you can secure a new deal before your payments increase on the SVR.

For more info on Accord Mortgages, please contact a member of the Strive team, by emailing info@strivemortgages.co.uk or call us on 01273 002697.