Accord Contractor Mortgages, part of the Yorkshire Building Society, operates as a broker-only lender offering a range of appealing products. These include offset mortgages, complimentary valuations, and cashback deals, among others.
Known for their contractor-friendly and flexible approach, Accord’s underwriters are proficient and have the authority to make discretionary decisions. They are committed to considering each client’s unique circumstances in their lending decisions.
Accord’s Criteria for Day Rate Contractors:
- Minimum Contract Value: Accord requires a minimum gross contract value of £75,000 for contractor mortgages, which translates to a daily rate of £289 over 52 weeks.
- Day Rate Consideration: Accord also caters to contractors on a day rate, including those with a day rate of £300 who work fewer than five days a week and fall below the £50,000 threshold.
- Contract Duration and History: If you have three months remaining on your contract, Accord asks for at least 12 months of contracting history. For contracts with less than three months remaining, a 24-month history is required.
- Remaining Contract Time: A minimum of four weeks remaining on your contract is preferable. Accord understands the short-term nature of contracts and generally does not insist on longer durations. If your contract has less than four weeks remaining, they may require an extension or a new contract.
- Employment Gaps: Accord is lenient with employment gaps, allowing for holidays or a few weeks off. However, multiple months off in a 12-month period might necessitate considering other lenders. Accord accepts applications with up to 8 weeks between contracts.
Gross Contract Value Calculation:
- Accord calculates the gross contract value by multiplying the daily rate by five (for a working week) and then by 46 weeks.
- The average daily rate from the previous year is not used in these calculations.
Example Calculations:
- Day Rate: £217 per day x 5 days x 46 weeks = £66,470 gross contract value.
- Hourly Rate: £42 per hour x (stipulated or 37.5 hours default) x 46 weeks = £72,450 gross contract value.
Application Requirements:
- Proof of ID (such as a Passport or DVLA Licence).
- Proof of Address (such as a utility bill and council tax bill).
- Current and previous contracts (going back 12 months) with Terms and Conditions, signed and dated.
- An up-to-date CV to demonstrate your strong work record.
- Three months of personal and business bank statements.
- Proof of deposit for property purchases.
Having all necessary documentation ready ensures a smooth process and enables us to present your application to Accord’s underwriters effectively, leading to a quick and positive decision.
If additional documents are required, our advisor will inform you to enhance the success chances of your application. We meticulously assess each application before submission to protect your credit file – we understand its importance and treat it with the utmost care.
For a free, no-obligation, and informal discussion about your mortgage needs, feel free to call us or submit an enquiry online.
What Eligibility Rules Apply to Day Rate Contractors at Accord?
Accord Contractor Mortgages, an integral part of the Yorkshire Building Society, provides brokers with an exclusive range of mortgage products including offset mortgages, complimentary valuations, and attractive cashback offers. Their approach is meticulously tailored to efficiently meet the varied requirements of clients.
Known for their adaptable nature, Accord’s underwriters are granted the authority to make discretionary decisions, ensuring a personalised assessment of each client’s unique financial situation. This flexibility allows for bespoke mortgage solutions that are specifically tailored to individual requirements.
Who Are Accord Mortgages?
Accord Mortgages is a dedicated branch of the Yorkshire Building Society, committed to distributing mortgage products solely through qualified mortgage advisors who exemplify a high standard of excellence. This approach ensures that their mortgages are accessible exclusively via intermediaries, underscoring the value of specialized advice and tailored financial solutions.
As a component of the expansive Yorkshire Building Society network, Accord benefits from an extensive reach that includes over 200 locations throughout England and the Isle of Man. Situated in Bradford with its registered office in Leeds, Accord Mortgages maintains a prominent role in the UK financial landscape.
What Eligibility Rules Apply to Day Rate Contractors at Accord?
Accord Mortgages sets clear criteria for day rate contractors seeking mortgage approval to ensure financial stability and reliability.
Key Eligibility Requirements:
Minimum Contract Value
Accord mandates a minimum annual gross contract value of £75,000, equating to a daily rate of £289 over a year.
Day Rate Consideration
Contractors with a daily rate of £300, even working fewer than five days a week, are eligible if their annual earnings exceed £50,000.
Contract Duration and History
Applicants need at least 12 months of contracting history with three months left on the current contract.
Remaining Contract Time
A minimum of four weeks remaining on your contract is preferred to ensure stability; less may require additional proof.
Employment Gaps
Gaps in employment are permissible up to eight weeks annually, promoting flexibility without compromising loan security
These criteria are designed to accommodate the unique circumstances of day rate contractors while maintaining Accord Mortgages’ standards for financial prudence and risk management. By meeting these specifications, contractors can enhance their prospects for mortgage approval.
What Documents Are Needed for Mortgage Approval with Accord?
To successfully apply for mortgage approval with Accord, you’ll need to gather several important documents:
Application Requirements:
Proof of Identity and Residence
- Valid Passport or DVLA Licence
- Utility bill and council tax bill for address verification
Employment and Income Verification
- Current and previous contracts from the last 12 months, with Terms and Conditions, all signed and dated
- An up-to-date CV reflecting a strong work record
- Three months of both personal and business bank statements
Financial Preparedness
Proof of deposit for the property you intend to purchase
Having all required documents prepared streamlines the process and enhances the likelihood of approval by Accord’s underwriters. If additional documents are necessary, our advisors will guide you to boost your application’s success. We carefully assess each application to protect your credit file.
Why Is a Broker Essential After a Decline from Accord Mortgages?
When Accord Mortgages declines your application, engaging a skilled mortgage broker can be crucial. They understand the reasons behind a mortgage rejection and can recommend alternative financing options that may suit your situation better.
Working with a broker like Mortgage Knight offers essential insights into your financial profile and helps prepare you for future applications. Their expertise can greatly increase your chances of securing a mortgage, facilitating a smoother path to homeownership.
Accord’s Formula for Determining Gross Contract Value
Accord Mortgages utilises a straightforward method to compute the gross contract value for contractors, focusing solely on current rates rather than historical earnings.
Detailed Calculation Process
To determine the gross contract value, Accord multiplies the contractor’s daily rate by five, representing a typical work week, and then multiplies this figure by 46 to account for the annual working weeks. This formula ensures that the calculation reflects the potential annual earnings without considering fluctuations from the previous year’s daily rates.
Examples of Gross Contract Value Calculation
For example, a day rate of £217 results in a gross contract value of £66,470 when calculated at £217 per day for 5 days a week over 46 weeks. Similarly, an hourly rate of £42 over a 37.5-hour week for 46 weeks totals £72,450.v
Conclusion
Accord Mortgages, as part of the Yorkshire Building Society, stands out in the mortgage industry by offering tailored solutions through a network of dedicated brokers. Their flexible underwriting process and exclusive product offerings ensure that each client’s financial needs are met with precision, enhancing the prospects for mortgage approval.
For those going through the complexities of securing a mortgage, especially contractors with unique employment scenarios, Accord’s structured approach and supportive documentation requirements pave the way for successful applications. Engaging with a knowledgeable broker can further streamline this process, maximizing your chances of achieving your homeownership goals.
Frequently Asked Questions
What types of mortgage products does Accord Mortgages offer?
Accord provides exclusive mortgage products such as offset mortgages, complimentary valuations, and attractive cashback offers through brokers only.
How does Accord Mortgages tailor their services to individual clients?
Accord’s underwriters have the discretion to make personalized decisions, allowing for custom mortgage solutions based on each client’s financial details.
What are the eligibility requirements for day rate contractors at Accord?
Day rate contractors must have a minimum annual gross contract value of £75,000 and at least 12 months of contracting history to qualify.
How does Accord calculate the gross contract value for contractors?
Accord calculates this by multiplying the contractor’s daily rate by five (for a workweek) and then by 46 (for the number of workweeks per year).
What documents are needed to apply for a mortgage with Accord?
Applicants need a valid passport or DVLA licence, utility bills, council tax bill, signed contracts, an updated CV, and recent bank statements.
