Lendco’s latest product range is available from today. Due to the unfavourable conditions around 5-year money, they have also approved an exciting suite of affordability measures that they hope will make it easier for your borrowers to source the level of financing they require.
Key Changes Include:
- Withdrawal of all fixed rate products.
- Further reduction in margin for tracker with no ERCs.
- A new process around ICR calculations, please speak to your BDM to find out!
The volatility of the market pricing of 2, 3 and 5-year money has made offering fixed-term products a very short term, not to mention unattractive exercise. By overhauling their ICR process they believe their tracker product is now very competitive, as well as offering your clients the chance to sit on their portfolio and monitor the market until a more viable fixed rate option becomes available.
They have significantly reduced the margin on a tracker product with no ERCs, which will in turn give borrowers the opportunity to drop into one of their fixed rates by way of a Product Transfer.
Their tracker products track 3M SONIA and is reset quarterly so there is interest rate risk, but with 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 and they are available to talk through any questions, enquiries or problems you may have.