Accord launches 100 per cent Plus mortgage for professionals

The 100 per cent Plus professional mortgage enables borrowers to buy a home who would otherwise be unable to do so. It recognises the difficulty that young professionals have in affording property purchase due to a lack of savings or accumulation of heavy student debts.

The offset three-year fixed rate is 5.44 per cent, reverting to Accord’s SVR, currently 6.74 per cent. The overall cost for comparison is 7 per cent. The offset five-year fix is at 5.49 per cent and the overall cost for comparison is 6.8 per cent.

The arrangement fee can be added to the loan and £250 cashback is available on completion. There is full portability, subject to conditions.

The product is only available for purchase, not remortgage purposes.

Negative equity exists from completion so the mortgage is only available to borrowers in defined professional occupations where there are realistic expectations of income growth.

Linda Will, managing director of Accord Mortgages, said opportunities in niche markets are Accord’s raison d’etre. She said: “The 100 per cent Plus mortgage is the last piece of the puzzle. Young professionals have income which climbs quickly but have a lot of student debts and there’s significant demand to borrow excess.”

Rob Clifford, managing director of Mortgageforce, said: “Product innovation should be welcomed with open arms and Accord has done a good job with this.”