Accord Mortgages has eased affordability calculations for borrowers purchasing a new energy-efficient home. 

The intermediary-only lender will now automatically apply an expenditure discount in its affordability calculations for new build homes, to recognise these properties should have lower utility bills when compared to older alternatives.

This will be available across Accord’s standard product range, as well as Boost LTI – which offers up to 5.5 times loan-to-income (LTI) for buyers with household earnings of £60,000 or above.

Accord says this change should allow buyers to borrow more, potentially increasing the funds they can access by up to £13,000, subject to LTI limits.

Accord corporate account and propositions manager Andrew Calder says this change will help brokers and their clients. “This common-sense solution will reward clients who are looking to purchase a new build property and help them overcome the affordability challenges typical of the current environment.”

Barratt Developments head of mortgage lender relations Adrian MacDiarmid adds that this decision supports customers who want to make more energy-efficient choices while also demonstrating the importance of “cross-industry collaboration” to address the country’s housing shortage.