Further to Lendco’s communication yesterday please find attached their latest product range which is available from today.
Key changes include:
- Withdrawal of all 80% LTV products.
- Withdrawal of lower ERC 5-year fixed rates.
- Reduction in margin for tracker with no ERCs.
With where the market is currently pricing 2, 3 and 5-year fixed rate money these products are becoming increasingly unattractive for borrowers. Additionally, the extra leverage enjoyed by the pay rate ICR treatment of a 5-year fixed rate versus a shorter dated product has largely evaporated, if you believe the commentary around the medium-term outlook for interest rates then a 5-year product at current pricing levels could look like a bad play in the future for anything other than certainty today.
Lendco has significantly reduced the margin on a tracker product with no ERCs, they aim to give borrowers the opportunity to drop into one of their fixed rates by way of a Product Transfer at some point in the future IF fixed-rate pricing reduces to more palatable levels.
Their tracker products track 3M SONIA and are reset quarterly so there is interest rate risk, but with little or no difference in the ICR treatment over a 5-year fixed and the flexibility to move penalty free, they believe this could help some borrowers navigate this period of volatility.
As always they remain open for business and willing to lend, the team are available to talk through any questions, enquiries or problems you may have.