Accord Mortgages is suspending all lending on its 90% loan to value (LTV) products for first-time buyers.
Since launching the five-year fixed rate products on 17 June, the lender has seen the volume of applications soar, resulting in the busiest month in the lender’s history.
Accord said that while “every effort” has been made to manage service levels and maintain turnaround times, as one of the few lenders currently offering products with a 10% deposit, Accord has been forced to temporarily withdraw the products.
Jeremy Duncombe, director of intermediary distribution at Accord Mortgages said: “When we re-entered with products exclusively for first-time buyers we knew demand would be high and we prepared accordingly, but with the absence of so many lenders at this LTV tier, there is only so much business that our team can support whilst still maintaining a high level of service.
“We’ve been very clear and proactive with our messages around capacity challenges, and had expected more competitors to join us in this space. Our appetite to lending and our commitment to supporting the market, especially first-time buyers, has not changed. We know brokers have a huge challenge with the lack of high LTV lending available at the moment and once we have restored service levels we aim to be back in this market as soon as possible.”