Accord Mortgages, one of the UK’s leading mortgage lenders, has recently announced an increase in their loan-to-value (LTV) ratio to 80%. This is a significant change for Accord, as the previous LTV ratio was 75%.
The loan-to-value ratio is the amount of money that a lender will lend against the value of a property. For example, if a property is worth £100,000 and the lender has an LTV of 80%, they would be willing to lend up to £80,000. The higher the LTV ratio, the more money a lender is willing to lend.
The increase in Accord’s LTV ratio is likely to be welcomed by many potential homebuyers. It means that they can borrow more money against the value of their property, allowing them to purchase more expensive homes. It also means that they may be able to borrow more money than they would have been able to with a lower LTV ratio.
The increase in Accord’s LTV ratio is also likely to benefit existing homeowners. By increasing the amount of money that they can borrow against their property, it could allow them to access more funds for home improvements or other projects.
It is important to note that while the increase in Accord’s LTV ratio is likely to be beneficial for many potential and existing homeowners, it does come with some risks. Borrowers should ensure that they are aware of the risks associated with taking out a mortgage and make sure that they can afford to make the repayments before taking out a loan.
Overall, the increase in Accord’s LTV ratio is likely to be welcomed by many potential and existing homeowners. It could allow them to access more funds for home purchases or improvements, but borrowers should ensure that they are aware of the risks associated with taking out a mortgage before doing so.