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Accord stands firm on B2L lending criteria

Robyn Hall

March 11, 2013

The move comes despite recent decisions by BM Solutions and Nationwide to review their buy-to-let lending criteria.

Chris Maggs, Accord Mortgages national account manager for buy-to-let, said: “We do not currently lend to landlords with DWP assisted tenants or tenants in receipt of housing benefit.

“Accord is a relatively new entrant into the buy-to-let market and as a responsible lender have taken a cautious approach, with a focus on financially sound borrowers who already have some buy-to-let experience.”

However in December’s Mortgage Introducer we revealed that Accord was one of two companies that were ‘on the brink’ of reviewing criteria.

At the time Maggs said: “Our range of mortgages and lending policy is continually evolving and we would not rule out changes in the future to satisfy requirements of the private rental sector – providing applicants meet our fundamental requirements of being experienced buy-to-let borrowers with a good financial track record.”

Industry experts have said that should lenders continue to persist in restricting such lending it could open the door for lenders who are more willing to do business.

Doug Hall, director at 3mc, said: “The LHA sector accounts for 20 to 25% of the private rental sector and one in four are currently in receipt of housing benefits.

“Other lenders are seeing this more as an opportunity than as a threat and other lenders are considering entering the market in the near future.”


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