Below is an update from Tandem Home Loans. Contact our team today for more information.
Announcement
Product Update
We are pleased to announce an extension to our product offering. We have expanded our product range to include a 2yr, 3yr & 5yr with ERC and retained the existing 5yr No ERC product. These will be live for new applications proposed from Wednesday 3rd July 2024
The redemption charge post the fixed rate period on ERC has been reduced. After the fixed rate period ends, clients are required to pay an early repayment charge calculated on the basis of the interest charge of up to 28 days following the date on which an early repayment is made. The No ERC product remains unchanged at maximum 2 months interest.
Early Redemption Charges
- 5Y – 5%, 4%, 3%, 2%, 1%;
- 3Y – 3%, 2%, 1%;
- 2Y – 2%, 1%
Overpayments – During the fixed rate period
Overpayments are limited to no more than 10% of the amount borrowed in the first year. For each subsequent year thereafter, overpayments are limited to 10% of the balance outstanding at the start of that year in which the overpayment is made.
Overpayments which exceed this allowance will incur an early repayment charge as outlined above on the amount repaid over the allowance.
After the fixed rate period there are no restrictions to making overpayments at any time. The No ERC Product has no restrictions to making overpayments at any time.
You can find further details relating to this in the updated product guide attached.
Pipeline Validity
We would like to remind you that the existing pipeline and rate validity is 30 days.
We kindly ask that you cascade this communication to all relevant team members. Please see attached the following updated documents:
- Tandem I&E V.2.0
- Revised Product Guide