We’ve made the decision to temporarily change some of our residential criteria. These changes mean we can keep lending responsibly and give the best level of support and to our borrowers during these uncertain times.
Our Underwriters will still be taking ownership of each case submitted to us and retain their discretion to make common sense decisions, but applicants who have a history of adverse credit may have their case referred for Underwriter to further consideration.
Missed payments on Secured and Unsecured & Mortgages
- For secured loans, we’ll no longer accept missed payments on a single account within the last 24 months.
- For unsecured credit, we’ll no longer accept consecutive missed payments within the last 24 months – including mobile phone, utility, fixed term or mail order payments.
Defaults
- No new defaults registered within the last 6 years.
CCJ
- All CCJs must be satisfied.
- No new CCJ’s in the last 6 years.
Our BDM’s will be able to support brokers with Underwriter referral’s prior to a DIP being submitted.
GENERAL ENQUIRIES – PLEASE USE OUR WEBCHAT FACILITY OR CONTACT ME ON 07768553087 OR EMAIL twhill@ybs.co.uk
Our aim is to provide you with all the information you need to help your clients over the next few months. Anything you would like to see in future editions, feel free to let me know.
LENDING CHANGES
From Tuesday 31st March we have changed our lending rules, using either desktop valuation or an automated valuation model (AVM), we will continue to lend on:
- Residential purchases, where the maximum loan-to-value (LTV) is 75% or below
- Residential re-mortgages, where the maximum LTV is 85% or below
- Buy-to-let re-mortgages, where the maximum LTV is 65% or below
Whilst social distancing measures remain in place, it won’t be possible for valuers to physically inspect properties. This means for the time being, we will be unable to lend on the following properties:
- New build
- Flats
- BTL purchases
- Properties in Northern Ireland
- Non-standard methods of construction
- Properties valued at more than £1m
We will look to apply the same rules to our pipeline cases to progress as many of these as possible. Pipeline cases where we cannot use desktop valuations or AVMs will remain in the pipeline until a physical valuation can be carried out. Brokers will have the choice of leaving these cases in the pipeline until we can value them, or cancelling the case.
ID&V UPDATE
Please note that in the current circumstances we will continue to complete an electronic ID (EID) check for all applications as per our standard policy. For any applications that do not pass the EID check we will request copies of ID documents.
In these circumstances, we are temporarily allowing acceptance of copied documents where the broker has not seen the original.
CRITERIA CHANGES
Adverse:
CCJ
All CCJs must be satisfied
None registered in the last 6 years
Defaults
None registered in the last 6 years
Missed payments: (Secured, Unsecured & Mortgages)
Secured loans: no missed payments over a single account within the last 24 months
Unsecured credit: no missed payments within the last 24 months including Communications, utility, fixed term or Mail Order”
Debt Consolidation
We are capping maximum amount of debts to £50,000 or 10 debts when remortgaging for debt consolidation.
We’re also temporarily reducing our maximum LTV for debt consolidation cases to 80% during the Covid-19 outbreak.
PAYMENT HOLIDAY FAQS
Q: How long can payment holidays last for?
A: The option of a payment holiday for up to three months is available for customers who are experiencing issues with their finances as either a direct or indirect result of Coronavirus.
They must be up-to-date with their payments to be considered for a payment holiday. If their account is in arrears they may still be eligible but we will need to talk to them to assess their circumstances
Q: Once the payments are rolled onto the main balance, will the term be automatically extended or the monthly payments increased?
A: Customers will still owe the money where a payment holiday has been granted and interest will still accrue, so if you are able to make part of your normal mortgage payment to reduce the money you owe or your interest charges then you should consider doing so.
At the end of the payment holiday we will recalculate the monthly payment based on the outstanding mortgage balance and remaining term. It is very likely the payments will increase particularly if there is a shorter term left on your mortgage. The payments will be recalculated on a repayment basis and we will contact you to let you know what your new payment is.
If you are going to struggle with the new payments we can discuss other options with you at the time.
Q: How quickly can a decision typically be reached?
A: We are doing our best to support all customers during these unprecedented times. However, the spread of COVID-19 is likely to have an impact on staff levels and applications will be dealt with as quickly as possible. At this time, please only contact us if you have concerns about immediate payment. This ensures we can help those who are in most need.
Q: What evidence will be required to qualify for a coronavirus payment holiday?
A: The customer doesn’t need to provide any documentation; they will just need to self-certify that their income has been either directly or indirectly impacted by COVID-19.
Q: How will the non-payment be recorded with credit reference agencies?
A: Individual credit ratings will not be affected.
Q: How does my client request a payment holiday?
A: They can do so by visiting the existing customer section of our website and completing the form. If they have less than one month’s arrears we will not need to contact them.
https://www.accordmortgages.com/existing-customers/paymentholiday/index.html
For customers with one month or more arrears, we will need to speak with them.
RESI – 0345 1200 872
BTL – 0345 848 0225
Q: New applications – Will a customer who is due to complete imminently be able to take the 3 month holiday after completion?
A: Yes, they will be able to take an immediate payment holiday.
PRODUCT TRANSFERS
Q: Can someone do a PT when they are in an agreed payment holiday?
A: Yes, providing the customer is not in arrears they will be able to do a PT.
Q: Will the 3 month holiday effect future PT’s
A: No, providing the customer is not in arrears and satisfies our usual PT criteria, they will be able to go ahead with the transfer.
Q: Will I be able to submit a PT online for my customer if they have had a payment holiday?
A: We are currently working on this. In the meantime you will be able to use our manual form.
