First-time buyers with just a 5% deposit will receive a boost from tomorrow (Wednesday) as Accord become the first lender to return to the 95% LTV market.
They are launching a five-year fixed rate mortgage – exclusively to first-time buyers. The new product has a fixed rate of 3.99% and comes with a £995 fee and free standard valuation. It’s available up to a maximum borrowing of £500,000.
They won’t be using the government’s mortgage guarantee scheme for this product and it’s not available for flats, new builds or properties in Northern Ireland.
They are one of just a handful of lenders that continued to offer 90% LTV mortgages during the pandemic and we’ve been monitoring the market closely to ensure we carefully broaden our support to those clients with even smaller deposits.
To qualify for the new product, first-time buyers will be able to borrow a maximum of 4.49 times their income, ensuring prudent affordability; to get an accurate lending figure please complete a DIP.
As the first lender to launch a new 5% deposit mortgage to the market, it’s important to balance demand with being able to offer the high levels of service you and your clients expect. So, this product may be withdrawn at relatively short notice, but we’ll continue to signpost our intentions wherever possible.