Accord has stated that brokers are receiving quicker offers on client applications following a series of changes it has made to the application and underwriting process.
The length of time it takes a broker to receive an agreement in principle (AIP) from Accord now averages under an hour, a reduction of three hours since May.
94% of AIPs are processed on the same day they are submitted, which is an increase of 53% from March.
Straight-through AIP acceptance rates from the intermediary-only lender have doubled since April with the number of AIPs being referred for further assessment falling by 23% (32%).
Since changes were made to its affordability criteria in April the average amount Accord lends has increased by 12%.
Meanwhile, Accord has cut its application to offer time by five days year-on-year from July 2015 to July 2016. The lender has consistently offered mortgages to borrowers in less than 15 days of an application being received within the last six months, which reached 12 days in July.
Charles Canning (pictured), managing director at Accord, said: “We want to help borrowers as much as we can, and changes to our affordability criteria and policy improvements mean we can offer more mortgages more quickly to a wider range of customers, and responsibly lend larger loans to some borrowers.
“The changes to our affordability criteria also make us more competitive against other lenders. For instance, a family with one child and a household income of £52,000 with monthly commitments, such as childcare, is looking to borrow £225,000 over 25 years. We would offer them a loan of £232,869, which is more than some of our biggest competitors.
“We believe that it is important to take a common sense approach to lending and we will continue to assess each application thoroughly. The changes have been carefully considered, and while Accord aims to take a more pragmatic view of borrower spending, as a responsible lender it will continue to ensure customers will comfortably afford their monthly repayments.
“We are constantly reviewing how we can improve our service to brokers. We hope our faster turnaround times and increased mortgage acceptance rates will assist intermediaries to meet their clients’ needs.”
