Accord Mortgages has enhanced its criteria for those who do not have indefinite leave to remain (ILR - commonly referred to as foreign national criteria) and is changing its rules for the acceptance of Universal Credit in affordability assessments.
From today, the lender has increased the maximum LTV for borrowers where no applicant has indefinite leave to remain from 75% to 90%, as long as minimum income requirements of £50,000 for at least one person are met.
Where no applicants have indefinite leave to remain, and do not meet the minimum income rule, Accord will continue to lend up to 75% LTV. For joint applications, where one applicant has indefinite leave to remain, the lender will continue to offer up to 95% LTV.
Accord will now also accept Universal Credit as a source of income when assessing affordability, provided that at least one applicant receives earned income. 60% of the total amount will be considered, excluding housing allowance, service charges, or the child element for children aged 11 or over, to be verified by the most recent Award Letter.
Nicola Alvarez (pictured), head of strategic partnerships and propositions at Accord, said: “We’re so pleased to make these changes, which mean that we’ll be able to help more underserved borrowers to achieve their home ownership dreams, whether they are buying their first home, moving up the property ladder, or remortgaging.
“Enhancing our criteria for those without indefinite leave to remain means that we can support them in achieving their home ownership aspirations, building a more stable future for themselves and their families.
“Accepting Universal Credit as part of our affordability assessment further supports our commitment to common-sense lending, opening up opportunities for brokers whose clients may be finding it more challenging to get the mortgage they need.”
