Accord has eased its criteria for foreign nationals and for borrowers who receive Universal Credit.

The intermediary lender has increased the maximum loan-to-value to 90% for applicants who do not have indefinite leave to remain in the UK.

Its higher LTV applies to single or joint applicants, so long as at least one of the borrowers has an income of £50,000 a year or more.

Where neither applicant has indefinite leave to remain and neither meet the minimum income rule, LTV will be capped at 75%. 

In cases where one applicant has indefinite leave to remain, it will lend up to 95% LTV as normal.

Subject to credit scoring, there is no minimum requirement on the amount of time the foreign national borrowers have been in the UK.

Accord has also made its rules more flexible for borrowers who receive Universal Credit.

The lender will accept 60% of UC from the latest award letter as a form of income in affordability assessments.

However, it will exclude certain elements which the applicant might receive on top of the basic rate – housing allowance, service charge and the child element for those aged 11 and over.

Accord only accepts UC in joint applications where the other applicant has earned income.

The UC amount cannot be more than the earned income from the salaried applicant.

In its update to brokers, Accord says: “These changes reflect our commitment to common-sense lending and apply whether your clients are first time buyers, moving home, remortgaging, or looking for additional borrowing.”