Accord Mortgages has updated its valuation policy to ensure that new applications can be processed as promptly as possible.
For buy-to-let and residential products, using either desktop valuation or an automated valuation model (AVM), Accord will continue to lend on:
- Residential purchases, where the maximum loan to value (LTV) is 75% or below
- Residential remortgages, where the maximum LTV is 85% or below
- Buy-to-let remortgages, where the maximum LTV is 65% or below
While social distancing measures remain in place, it will not be possible for valuers to physically inspect properties. This means for the time being, Accord will be unable to lend on the following properties:
- New build
- Flats
- Buy-to-let purchases
- Properties in Northern Ireland
- Non-standard methods of construction
- Properties valued at more than £1m
Accord says it will look to apply the same rules to its pipeline cases to progress as many of these as possible. Pipeline cases where the lender cannot use desktop valuations or AVMs will remain in the pipeline until a physical valuation can be carried out. Accord says it will be in contact with customers/brokers shortly to let them know whether we can proceed with their application.
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages, said: “Given the nationwide restrictions on valuations, we have reviewed our policies to ensure, where we can find an alternative to a physical valuation, we can continue lending on new applications and process those currently in the pipeline.
“We know brokers are under a lot of pressure at the moment, so we hope these clear guidelines will enable brokers to provide the most accurate information to their clients and allow our underwriting teams to progress the cases which fall within the guidelines as quickly as possible.”
Following guidance issued by UK Finance, the Law Society of Scotland and Register of Scotland, along with advice from its Scottish legal advisers, Accord has confirmed that Scottish completions will continue to take place.
Accord has reduced its SVR by 0.50 percentage points for existing customers to 4.49% from Sunday 19 April for YBS, CBS and Accord customers and Monday 20 April for N&P customers.
Meanwhile, the lender will continue to complete an electronic ID (EID) check for all applications as per its standard policy.
For any applications that do not pass the EID check Accord will request copies of ID documents, but as per the standard policy, these do not need to be certified.
Accord says that while it would normally expect a broker to have seen and taken a copy of the original ID documents before submitting the application, given the current social distancing measures in place, it understands brokers may not have/will not be able to obtain original documents to copy.
In these circumstances, Accord is temporarily allowing acceptance of copied documents where the broker has not seen the original eg. where the customer has taken a copy/photo and sent that to the broker electronically.