Accord Mortgages £5k Deposit Mortgage has ‘created a splash’ – Duncombe

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.