Accord Mortgages £5k Deposit Mortgage has ‘created a splash’ – Duncombe
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Accord Mortgages £5k Deposit Mortgage is going down well in the broker market and is helping under-served customers, Jeremy Duncombe (pictured), director of mortgage distribution at Yorkshire Building Society and managing director at Accord Mortgages has said.
Speaking in the first of a four-part video series, Duncombe said that Accord Mortgages’ £5k Deposit Mortgage was “targeting a particular type of customer” who had a decent income and good credit score but was struggling to save for a deposit, which could be due to high rental costs.
Yorkshire Building Society launched its £5k Deposit Mortgage earlier this year, with brokers saying at the time that the deal was “extremely welcome”.
Duncombe said that the product has “created a splash” and it was “lending money on it”, noting that it had had its first completion.
He continued: “There’s absolutely a demand out there, not everybody can get on the housing ladder, and this isn’t for everybody, but it is for those specific types of customers. We’ve seen already some great stories of people coming in be able to buy houses where they never thought they could or they’d have to wait a long time.”
He added that the lender was very careful about the risk of negative equity, which is why it was a capital and interest repayment mortgage and over a five-year term, so the debt can be paid down quickly, and house prices are expected to rise in the next five years.
Accord Mortgages’ £5k product ‘simplicity’ good for brokers and customers
David Hollingworth, associate director of communications at L&C Mortgages, said that it had already seen applications come in for this product.
“I think the simplicity of the product is great for brokers and for customers. It’s easy to understand the £5k deposit, everyone can get that, and the credit scoring and eligibility requirements are pretty minimal,” he added.
He noted that it “opens up a window of opportunity” for people who have been “edged out by high and think they can’t get a big enough deposit together”.
Vikki Jefferies, proposition director at Primis, added: “What I really liked about the proposition is it’s almost like a shop window proposition. It engages customers and gives them a reason to go and see brokers, so as well as solving those customers that are already in the supply chain, it also brings new customers to the market, which is only going to be a good thing as we try to tackle the problems of getting people on the housing ladder.”
Watch the 8:18 video, hosted by Victoria Hartley, contributing editor at AE3 Media, with Jeremy Duncombe, director of mortgage distribution at Yorkshire Building Society and managing director at Accord Mortgages, David Hollingworth, associate director of communications at L&C Mortgages, and Vikki Jefferies, proposition director at Primis. This is the first of a four-part video series.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.