Accord Mortgages is increasing its maximum loan-to-value to 85 per cent on residential purchases and resuming physical valuations for new cases.

The lender is also increasing its maximum property value for residential lending from £1m to £2m and will once again lend against flats.

Maximum LTVs were cut to maximum 75 per cent at the end of March in response to government restrictions on physical property valuations.

Since then Accord has been using desktop or automated valuations on all new and pipeline applications.

The lender is launching 11 new fixed rate deals for residential purchases on Friday at 80 and 85 per cent LTV.

These include:

• A two-year fixed rate at 1.87 per cent at 80 per cent LTV with £495 fee, £500 cashback and free valuation
• A two-year fixed rate at 2.08 per cent at 85 per cent LTV with £495 fee, £500 cashback and free valuation
• A five-year fixed rate at 2.00 per cent at 80 per cent LTV with £495 fee, £500 cashback and free valuation
• A five-year fixed rate at 2.16 per cent at 85 per cent LTV with £495 fee, £500 cashback and free valuation
• For both residential purchase and remortgage Accord will lend up to £1,500,000 at 75 per cent LTV and up to £1,000,000 at 85 per cent LTV.

All new applications will be subject to a physical valuation where possible, although brokers should be aware that to ensure the safety of all those concerned, appointments will be reduced and specific guidelines adhered to, which could impact timeframes.

Physical valuations will also enable Accord to lend against flats and properties with non-standard construction again, but it is still considering its policy on new-builds. 

Accord director of intermediary distribution Jeremy Duncombe says: “We have the desire and capacity to lend and our priority has always been to ensure we can offer the widest range of products with the highest level of service. 

“Rather than reduce restrictions too early and leave applications in the pipeline, we are now in a strong position to accept cases at a higher LTV and property value. 

“This provides increased choice to brokers and their as well as offering much-needed support to the market.

“We are working closely with valuation partners to process any new applications as well as review our current pipeline, which we acknowledge will take time.

“We will continue to monitor the situation and review our range, reintroducing products and criteria when it is prudent and feasible to do so.”

Yorkshire Building Society and Chelsea Building Society are also increasing their maximum loan-to-value to 85 per cent on residential purchase products and maximum property value for residential lending will rise from £1m to £2m.