Accord has updated its valuation policy to reflect the fact valuers are currently unable to visit properties and carry out physical inspections due to Covid-19 restrictions.
Accord will continue to lend on residential purchases on loan-to-values up to 75 per cent, residential remortgages up to 85 per cent LTV, and buy-to-let remortgages up to 65% LTV.
The lender says that while social distancing measures remain in place, it won’t be possible for valuers to physically inspect properties.
This means for the time being, it will be unable to lend on the following properties: new builds, flats, buy-to-let purchases, properties in Northern Ireland, non-standard methods of construction, and properties valued at more than £1m.
Accord says it will look to apply the same rules to its pipeline cases to progress as many of these as possible.
Pipeline cases where it cannot use desktop valuations or automated valuation models will remain in the pipeline until a physical valuation can be carried out. The lender will contact customers or brokers to let them know whether an application can proceed.
Accord Mortgages director of intermediary distribution Jeremy Duncombe (pictured) says: “Given the nationwide restrictions on valuations, we have reviewed our policies to ensure, where we can find an alternative to a physical valuation, we can continue lending on new applications and process those currently in the pipeline.
“We know brokers are under a lot of pressure at the moment, so we hope these clear guidelines will enable brokers to provide the most accurate information to their clients and allow our underwriting teams to progress the cases which fall within the guidelines as quickly as possible.”
Accord has reduced its standard variable rate by 0.5 per cent for existing customers to 4.49 per cent from Sunday 19 April for YBS, CBS and Accord customers and Monday 20 April for N&P customers.
It is writing to customers to explain how any changes will affect their monthly repayments.
Accord will continue to complete an electronic ID (EID) check for all applications as per its standard policy.
Whilst it would normally expect a broker to have seen and taken a copy of the original ID documents before submitting the application, given the current social distancing measures in place, it understands brokers may not be able to obtain original documents to copy. In these circumstances, it is temporarily allowing acceptance of copied documents where the broker has not seen the original.
