Income for additional lending

Deductions from Income 

The following outgoings must be declared: 

• The monthly costs of all debts which will remain in place on completion of the mortgage are included as a deduction within affordability
• Any credit cards to remain in place on completion of the mortgage are included as a deduction with 3% of the total credit balance being taken
• Monthly costs of any childcare/school fees 
• Monthly costs student loans 
• Monthly costs of any mortgage payments that do not meet the self-financing rules or are not going to be let out 
• Overdraft - 3% of latest total outstanding month end balance 
• Monthly costs of any property charges - ground rent/service charge/estate rent charge(s) 
• Monthly costs of any regular maintenance payments 
• Monthly costs of any other significant outgoings 

Unacceptable purposes for additional lending

The following purposes are not permitted:

• Bridging finance
• Commercial Lending
• Non secured lending
• Lifetime mortgages
• Equity release products

Valuations for additional lending

A revaluation is required where: 

• The new LTV exceeds 70% of the latest valuation (based on the existing borrowing and the proposed additional loan) or 
• The latest valuation type on the account is an external appraisal (EA) or desktop (AVM), regardless of LTV or the period since the previous valuation was carried out. 

Loan size and LTV limits for additional lending (existing customers only)

Loan to value
The maximum permitted LTV following additional lending is 85% and is based on total loan amount (existing borrowing + additional lending).

Please note: where the total loan amount exceeds £1 million, the maximum LTV is 75%.

Loan size
The maximum loan size including the original debt is £2 million.
 

Credit repair for additional lending

Accord no longer offers credit repair lending to new or existing customers.

In order to apply for additional lending, existing credit repair customers now need to be classed as prime. All mortgage payments must be paid in full and on time for the last 12 months to be classed as prime.  
 

Credit referencing for additional lending

A full credit reference search is carried out for all additional lending applications.

Purchase of adjoining land/holiday home (AL)

A solicitor must be instructed by borrowers to add land to existing title; funds will be released to the acting solicitor upon request. 
 

Help to Buy equity loan - Additional lending

The customer must have evidence of permission from Homes England/Help to Buy (Wales) Ltd before submitting an additional loan application. 

Additional lending can only be considered for staircasing (customer using the proceeds from the additional loan to repay their equity loan), essential modifications and transfer of equity (purchasing the full equity of the property from the current joint borrower). 

If the customer is staircasing, a solicitor must be instructed. 
Where there is to be an equity loan outstanding on completion of the additional loan: 

• the maximum LTV calculated using the mortgage amount plus additional loan amount is 75% 
• the maximum LTV calculated using the mortgage amount, additional loan amount plus the outstanding equity loan amount is 85%.

Where the equity loan is being repaid in full, normal LTV rules apply.