Accord reduces fixed rates and reveals contractor mortgage criteria

Accord Mortgages has announced it has reduced rates on a selection of mortgage and remortgage products, including a new two year fixed rate at 1.38% up to 75% loan to value (LTV) with a £995 product fee, or a five year fixed rate at 2.13% up to 75% LTV with the same fee.

These products come with a choice of £250 cashback on completion, or free standard valuation and legal fees.

In line with this, Dudley Building Society and Newcastle Intermediaries have also updated their fixed rate offers. Dudley Building Society has now launched an exclusive five year fixed rate residential mortgage up to 80% LTV, proving the lowest in the lender’s history at 2.89%.

This is available for purchase and remortgages up to £1 million with fee assisted legal fees and free valuation. 10% overpayments are also allowed without penalty for the five year term.

Newcastle Intermediaries has introduced a three year fixed rate at 2.05% up to 80% LTV with no arrangement fee. Free valuation and free legal fees are also available for remortgages and £250 cashback for purchases.

Not only this, however, Accord Mortgages also revealed it will be piloting a new lending policy to help contractors and freelancers apply for a mortgage, having developed its criteria to allow for contractors receiving income less regularly compared to those on permanent employment contracts.

Accord will now only require the applicant’s CV, latest three payslips and business bank statements, plus three months’ worth of personal bank statements, to calculate affordability from. It will also allow for up to an eight-week gap between contracts in a trading year.

Aiming to expand the full proposition in 2017, Accord’s entire new range will be available through selected specialist firms.

As the contractor and self-employed market accounts for 22% of the UK workforce, this is an important step in the right direction for allowing greater flexibility to contractors with more specialist requirements.

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