Accord Interest Only Mortgages: Criteria Explained (2026 Update)

Accord Interest Only Mortgages offer one of the more flexible approaches to interest‑only lending in today’s market, but their criteria still contain several important restrictions that borrowers need to understand before applying. This guide breaks down Accord’s rules in plain English, including acceptable repayment strategies, loan‑to‑value limits, age restrictions, and evidence requirements.

This article is part of a wider series reviewing 12 major lenders’ interest‑only policies, updated annually. If you’d like a personalised review of your options across the whole market, you can request a full mortgage assessment at the end of this guide.

Accord Interest Only Mortgages - what's allowed

Accord will lend on interest‑only as long as the borrower has a credible and evidenced repayment strategy in place to clear the loan at the end of the term. They allow:

• Up to 75% LTV on the interest‑only portion
• Up to 85% LTV overall if the remainder is on capital repayment
• No minimum income requirement for interest‑only
• Standard affordability assessment (no enhanced stress tests)
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Interest‑only is not allowed where the borrower is raising capital for debt consolidation.

Accepted Interest Only Mortgages Repayment Strategies

Accord accept several repayment strategies, each with strict evidence requirements.

1. Existing Endowments

• Must cover 100% of the interest‑only borrowing at the mid‑point projection
• Must have been in place 12+ months
• Must mature before the mortgage term ends
• Must be in the borrower’s name and issued by a UK‑regulated provider
• Evidence: Latest policy statement (within 12 months)
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2. General Investments

Includes Stocks & Shares ISAs, Unit Trusts/OEICs, Investment Bonds.

• Current value must cover 100% of the interest‑only element
• Must be held 12+ months, in sterling, and in the borrower’s name
• Evidence: Latest investment statements
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3. Savings

• Must cover 100% of the interest‑only borrowing
• Must be held 12+ months, in sterling, and in the borrower’s name
• Evidence: Latest savings statement
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4. Sale of the Mortgaged Property (Downsizing)

• Can be used for up to 60% of the property value
• Property must have £250,000 minimum equity, or £300,000 in London
• Downsizing plan must be plausible and evidenced
• A valuation will be required
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5. Sale of Other UK Property

• Up to 75% of the equity in the other property can be used
• Property must be UK‑based and solely owned by the borrower(s)
• Evidence: Latest mortgage statement (if applicable)
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6. Pension Lump Sum

• Defined contribution/SIPP: up to 60% of tax‑free lump sum (15% of pot)
• Defined benefit: up to 90% of tax‑free lump sum
• Mortgage term must run beyond age 55
• Evidence: Latest pension statement
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Age Restrictions for Accord Interest Only Mortgages

Accord apply strict age rules for interest‑only:

• Mortgage term cannot extend beyond retirement age or age 71, whichever is sooner
• If the term extends beyond 71, income cannot be used for affordability
• Sole applicants already retired: allowed if term ends by age 71
• Joint applicants: allowed if one is retired, but no retirement income can be used
• No more than 25% of the mortgage term can occur after age 70 + 364 days
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Loan Size & LTV Limits for Accord Interest Only Mortgages

• 75% LTV maximum for pure interest‑only
• 85% LTV maximum for part‑and‑part, provided the interest‑only portion stays within 75%
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Evidence Requirements (Summary)

Accord require evidence of the repayment strategy:

• At application
• At least once during the mortgage term
• Even for variations, porting, or mid‑term reviews
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This is stricter than many lenders and is important for clients to understand upfront.

Why This Matters in 2026

Interest‑only remains attractive for higher‑income borrowers, those with strong assets, or those planning to downsize. But criteria vary dramatically between lenders. Accord’s approach is relatively flexible on income but strict on evidence and age.

As rates continue to move quickly, understanding which lenders support your repayment strategy — and at what LTV — can make a significant difference to your borrowing options.

Next Steps & Getting Advice

Interest only mortgages can be a useful tool, but they’re not suitable for everyone. The rules and evidence requirements differ between lenders, and getting the right advice early can help you avoid problems down the line.

If you’d like a personalised review of your options across the market, or guidance on whether an interest only mortgage with Accord — or another lender — could work for you, please get in touch. Our team can talk you through the criteria, repayment strategies, and what’s realistic for your situation.

Risk Warning:

Your home may be repossessed if you do not keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage.

This information is specific to Accord; other lenders are available and have different criteria.