Accord Mortgages has made substantial criteria updates that will make more UK borrowers mortgage lending eligible, particularly foreign nationals without Indefinite Leave to Remain (ILR) and Universal Credit claimants. The changes show Accord’s renowned ‘common sense’ lending strategy and provide more possibilities for first-time buyers, movers, and remortgagers.
Higher Loan-to-Value (LTV) for Foreign Nationals Without ILR
So far, the terms of mortgages for non-ILR applicants have been stricter, but today Accord raised its highest LTV to 90% on both sole and joint applications where none of the applicants hold ILR.
Key Points on the New Foreign National Standards:
- 90% LTV now available for non-ILR applicants, provided at least one applicant earns £50,000 or higher.
- Where the applicants fall below the £50,000 income bracket, Accord will still lend at 75% LTV.
- Where one of the joint applicants has ILR, Accord will retain its usual 95% LTV lending.
- Portability and variation follow standard lending terms.
- All credit score and affordability conditions apply.
This is a significant plus for foreign nationals living in the UK in terms of being able to buy a property since it has been harder to obtain higher LTV mortgages without ILR.
Universal Credit Now Approved for Affordability
As another positive move, Accord will now accept Universal Credit as an income when assessing affordability.
How Universal Credit is Calculated:
- 60% of the Universal Credit award (from the latest Award Letter) will be used by Accord.
Excluded factors:
- Housing Allowance
- Service Charge
- Child Element (if the child is 11+)
- At least one of the applicants must also have earned income.
- The amount of Universal Credit should not exceed 100% of earned income on the application.
Evidence required: most recent Award Letter in addition to bank statements for 3 months.
The change favours borrowers who hold a mix of earned income and benefits, improving lending access for a wider range of clients.
What This Means for UK Borrowers
These reforms from Accord Mortgages are a big step closer to making the UK mortgage market more inclusive. You may be a foreign citizen working in the UK, or receiving Universal Credit alongside earnings, and now you might be able to get more competitive mortgages.
FAQs
1. Do I qualify for a 90% mortgage if I don’t have Indefinite Leave to Remain?
Yes potentially. It’s now possible for ILR-free applicants to have up to 90% LTV where one of the applicants earns a £50,000+ income.
2. I only earn less than £50,000?
Where none of the applicants earn a £50,000 income, the maximum available LTV is 75%.
3. I’m applying with a partner who has ILR. What’s my maximum LTV?
Where one of the applicants has ILR, Accord will lend up to 95% LTV.
4. Can Universal Credit be used as a mortgage income?
Yes. Accord now takes Universal Credit (60% of award, subject to some exceptions) into affordability calculations.
5. What documentation do I need to provide if I am using Universal Credit as income?
You will need to provide your latest Award Letter and your latest three months’ bank statements.
Contact Oportfolio Mortgages Today
Here at Oportfolio Mortgages, we are experts at guiding customers through complex mortgage requirements. If you are a foreign national without ILR, or simply wanting to remortgage in general, our skilled advisers are on hand to help. Call Oportfolio Mortgages today to find out how these new Accord Mortgages requirements could make buying your perfect home possible.
