Accord cuts residential rates and Aldermore improves criteria for the self-employed

Accord Mortgages reduces the rates across its residential fixed-rate mortgage range, while Aldermore targets self-employed borrowers with tailored mortgage criteria.

Accord Mortgages, the intermediary-only lender has reduced its residential rates by up to 0.24% on its 75%, 80%, 85% and 90% loan-to-value (LTV) fixed-rate mortgages.

The discount covers its two, three and five year terms. For example, a five-year fixed rate mortgage is now available to house purchase customers at 2.20%(4.21% APRC) at 80% LTV, or at 2.39%(4.28% APRC) at 85% LTV.

Both products offer £250 cashback on completion, free standard valuation and carry a £995 product fee.

Three-year fixed rates start at 2.37%(4.72% APRC) at 90% LTV, for purchase and remortgage and the lender is also offering a no-fee three year fixed rate of 2.76%(4.76% APRC) at 90% LTV, which comes with £250 cashback on completion and free standard valuation.

Accord’s National Intermediary Sales Manager, David Robinson said:

“We are sure the new rates will prove attractive to brokers and borrowers, and we are keen to offer mortgages that deliver value for money to our customers with features like cashback on completion. The five-year rate reductions will appeal to borrowers looking for the security of fixing their mortgage repayments to a competitive rate for a longer period.”

With the aim of providing more more flexibility to self-employed borrowers, Aldermore has cut the number of years of accounts it requires for its customers and has revised the way it calculates self-employed income.

The lender has reduced its minimum account criteria from two to one year and will consider retained profit within the business when assessing affordability.

Speaking about the revisions, Charles Haresnape, Aldermore’s group managing director explained that as self-employed borrowers do not fit the norm for many high street lenders, it can be a real challenge for them to find the financial support they need to buy a home.

As self-employment now accounts for 15% of the UK’s employed market, Haresnape said that Aldermore is consistently working to make sure the process of applying for a mortgage as straightforward as possible.

The lender requests that applications are accompanied by one year of accounts prepared by a suitably qualified accountant or an accountant’s certificate, or an SA302 and accompanying tax overview document obtained from HMRC.

Rather than using an average of the last two years’ profit figures, Aldermore will consider the latest years’ figures when making its assessment, if net profit is level or rising.

Haresnape added:

“We have always listened carefully to our brokers and customers to ensure our product range can offer the best possible solution for each applicant’s unique situation. One in four Aldermore mortgages comes from a self-employed person and I feel the change to our mortgage criteria will help make the process much easier for our self-employed customers to apply for a mortgage, whilst providing them with the support they need.”

24th January 2017