Accord introduces cap for mortgages over £500,000

by Aaron Strutt

Sep 01 2014

Accord Mortgages, which is part of the Yorkshire group of building societies, is the latest mortgage lender to introduce a four times income cap for loans above £500,000.

The lender says it has introduced the maximum loan to ensure it provides responsible mortgages and becomes more in line with its competitors in the market.

Accord’s move follows the Bank of England’s announcement, back in June, that from 1 October lenders must limit the proportion of new lending above 4.5 times income to 15%.

Aaron Strutt, product manager at Trinity Financial, says: “Many of the banks and building societies are offering to lend around five times salary, although they are still tightening up.”