Accord changes proof criteria post-regulation
However, a series of “sense checks” will still apply when the case is submitted and random sampling will take place where Accord will approach the employer or accountant directly for evidence of income. If it comes to light that the stated income has been exaggerated, Accord reserves the right to change the interest rate to SVR + 1 per cent.
Linda Will, Accord’s managing director, said, “This move recognises that from 31 October, the intermediary is subject to the full FSA regime and MCOB4 imposes a responsibility to assess their client’s ability to pay. That being the case, we will not actively seek the payslips or P60s that are currently required.”
She continued, “We have piloted this approach over a number of months with a number of selected partners and it has proven popular with no evidence of any abuse. We are confident, therefore, that we can roll this approach out and make our brokers’ lives a little easier without increasing the risk to which we’re exposed.”
For all cases where the LTV exceeds 75%, the value is £500,000 or above or where no intermediary advice has been given, current requirements remain.