Accord Mortgages: Contractor-Friendly Mortgage Options
Accord Mortgages, part of the Yorkshire Building Society Group, is a UK-based mortgage lender offering a wide range of mortgage products, including fixed-rate, variable-rate, buy-to-let, and remortgage options. These are tailored for first-time buyers, home movers, and landlords. Accord’s contractor mortgages are designed to accommodate the unique income patterns of self-employed individuals, such as fluctuating day rates and contract work. By assessing a contractor’s contract history and current contracts, rather than just relying on traditional payslips, Accord simplifies the process for contractors to secure a mortgage. Their goal is to help contractors achieve home ownership or investment ambitions with flexible lending criteria and competitive mortgage rates.
Why Accord Mortgages is a Great Option for Contractors
Accord Mortgages stands out as a top choice for contractors due to its competitive rates and flexible approach. Although they entered the contractor market later than some lenders, Accord has quickly earned a reputation for understanding the unique needs of independent professionals. Their pragmatic underwriting practices mean they consider factors that other lenders might overlook, increasing the chances of mortgage approval for modern-day contractors.
Additionally, Accord offers a rare ‘offset facility’, allowing you to use your savings to reduce the total interest paid on your mortgage. This combination of flexible underwriting and innovative financial options makes Accord Mortgages a strong solution for contractors seeking a mortgage.
Essential Checklist for Securing an Accord Mortgage Contractor Mortgage
If Accord seems like the right fit, we at Contractor Mortgage Solutions can assist with your application. Here’s what you need to know:
Contract Requirements
Contractors must have at least 6 months of industry experience and a minimum of 6 months remaining on their current contract. If the contract has less than 2 months left, evidence of a new contract is required.
Income and Currency
Accord calculates income over a 46-week period based on the daily rate and only accepts income in GBP. The minimum annual income is £50,000, with a minimum daily rate of £300.
Documentation for Limited Company Contractors
Limited company contractors need to provide the latest 3 months of business bank statements and the most recent personal bank statement.
Documentation For Umbrella Contractors
Umbrella contractors must submit the last 3 payslips from their umbrella company and the last 3 months of personal bank statements.
Documentation for Payee Contractors
PAYE contractors typically need to provide proof of income and employment status, though specific documentation requirements may vary.
Contracts Gaps and Earnings
Applicants should have no more than 1 missed payment on secured credit or 2 missed payments on unsecured credit within the past 24 months.
By meeting these criteria, you can benefit from Accord’s quick processing times and secure the mortgage you need.
Partnering with Accord Mortgages for Seamless Contractor Mortgages
We work closely with Accord’s senior underwriters to make your mortgage application as smooth as possible. The process begins with an initial assessment of your financial situation, including providing key documents such as proof of income (recent contract details and bank statements), ID verification, and proof of address.
Once we have these documents, we submit them directly to Accord’s underwriters. Our established relationship with them ensures that your application is reviewed quickly, often resulting in a Mortgage in Principle (MIP) within 24 hours. After obtaining the MIP, the full mortgage application is submitted, which usually takes around three days, with the entire process completing within 2 to 4 weeks.
FAQ’S
Are there any restrictions on credit history for mortgage applicants?
Yes, Accord’s credit policy requires that applicants have no more than 1 missed payment on secured credit or 2 missed payments on unsecured credit within the past 24 months.
How does the ‘offset facility’ benefit contractors?
Accord’s offset facility allows contractors to use their savings to reduce the interest on their mortgage. This can help pay off the mortgage faster and save on overall interest costs, a feature not commonly offered by all contractor-friendly lenders.
How does Accord handle contractors who work internationally?
Accord requires that income be in GBP. If you work internationally, you must convert your income to GBP and provide documentation in line with their requirements.
What support does Accord offer during the mortgage application process?
Accord offers support through their intermediary partners, including dedicated service teams to assist with the mortgage application process. They aim to make the process as smooth as possible for contractors and provide guidance on required documentation and eligibility.