Below is an update from Tandem Home Loans. Contact our team today for more information.
Announcement
New criteria changes from Tandem
We have announced significant changes to our criteria, alongside rate reductions today. To assist you with understanding more about the changes, I have prepared a summary for you below.
3-2-1-0 Product Tiers
Our product tiers are now simply aligned with the number of credit events we allow in that tier. For example, Tandem Zero is for applicants with 0 defaults, CCJs or missed mortgage payments in the last 24 months, whereas Tandem One is for clients with up to 1 default, 1 CCJ and 1 missed mortgage payment per applicant. The same rationale applies to Tandem Two and Tandem Three tiers.
Reduced Rates
Our rates now start at 6.49%, however with an A rated EPC lifetime discount this rate can be reduced to 6.19%.
Increased LTV
We have increased the maximum LTV on our Tier 1 range from 85% to 90%.
First-time Buyer Definition
Our first-time buyer definition is now “Applicants without a mortgage for more than 36 months”
Personal bank statements no longer required on Tandem Zero & Tandem One
- Previously: Required for self-employed
- Exception: First-time buyers on and Tandem One
Contractors/CIS/Agency permitted on Tandem One, Two & Three
Loan Sizes
Maximum lending limits:
- Under 85% LTV: £500,000
- Over 85% LTV: £350,000 (Tandem Zero) £300,000 (Tandem One)
IVA & Bankruptcy, DRO discharge periods aligned
We now require each to be satisfied for at least 3 years (was 2 years for IVA). Maximum LTV 85% on Tandem One, Two & Three.
Debt Management Plans
No active plans allowed (Settled on Tier 3, must be settled >12 months ago)
Defaults
Under £350 for comms & utilities do not affect product tier.
Defaults/CCJs
Under £750 rule removed and such credit events will now be counted as standard.
Fixed-term Contractors
Must have a minimum of 6 months remaining on contract or evidence of renewal that takes them past the next 6 months.
LTV for new build houses and flats
- New build houses: Max 85% LTV
- Flats: Max 75% LTV
Completion fee is now £1495
Unencumbered properties are no longer considered
Details of our new product range, and criteria guide can be found below. If you have an enquiry to discuss, please contact us on 01253 603951 or reach out to your Key Relationship Manager.