Buying a home is one of the biggest steps in life. It’s exciting, but it also comes with a bit of stress. That’s why we thought, why not sit down and talk about it like friends sharing tips?

From down payments to choosing the right location, and avoiding those common mistakes people make, we’ll cover it all. Simple talk, friendly style, so the whole home-buying journey feels easy and stress-free.

Read more: 5 Hidden Mortgage Secrets Your Bank Won’t Tell You

About Tandem Bank

Focus on Families

So Roger, tell me a bit more about Tandem Bank and where you see you in the market today.

So Tandem Bank, right at the heart of what we do is families. It’s a residential lender that really wants to help aspirational families, first-time buyers, be able to buy their first home and make them feel safe. And for those that are existing homeowners that have had maybe a challenged credit file or had some problems, we’ll get into that detail in a moment, but to help them with remortgages. So it’s all about families. That’s really the whole aim and message of Tandem Bank.

By offering simple and supportive remortgage options, Tandem Bank continues to help families secure better financial futures.

Helping First-Time Buyers

The Challenges They Face

Brilliant, and it’s fair to say that first-time buyers do need a boost when getting onto the property ladder. So can you tell me a bit more about what Tandem Bank are doing to help first-time buyers onto the property ladder?

Yeah, so let’s think about this. Most families who are looking to enter the property ladder are renting at the moment. They normally will have had at least their first child which, if you went back a few years ago, that wasn’t what would happen. They would actually buy the first home and then have the first child. And the reason that they haven’t done that is literally the cost to be able to save up for a property, so the cost of that deposit being saved and affordability.

Rising Rent vs Buying

But what we’ve seen with the recent rise in interest rates of the last two years is the cost of rent go astronomical. I’m a landlord myself and I understand just how much rents have gone up and what it costs now to rent a property. It’s cheaper to actually buy, and I think we’ve now created a new normality in acceptance of where interest rates are.

They’ll never go back, hopefully, to that 0.1%. I say hopefully because that was a world tragedy event that caused that. So we’ve got a new norm — interest rates are driven, this is the time to buy.

Deposit Options at Tandem

So first-time buyers have two challenges. One is affordability, and I don’t think you’ll get a better time now to actually buy. And the second is a deposit — how do I get that deposit?

So at Tandem we will do 90% loan-to-value. We will add our lender fees above, so that means you just need to put in 10%.

The options that we’ve got are: one, if you’ve got the Bank of Mum and Dad or any family member that would like to give you a 10% deposit — and sometimes we’re lucky enough and blessed to have a family member that is prepared to give the money. Or, if you’ve got a family member selling their buy-to-let — so maybe Nan’s selling a buy-to-let in Derby and she wants to give 10% of that equity to her grandchild who is buying that property — we’re happy to do that.

Okay, and third one which is quite unusual — if they want to get a personal loan. So let me give you an example. You’ve got a couple, they both have two nice cars, and one of them says: “Do you know what, I don’t need my car, I can use the bus or work from home. I’ll sell it, but I want to keep that personal loan, and I’m going to use that personal loan towards the deposit.”

So you can mix and match. It can be 5% from a family member (a cash gift) and 5% personal loan, or it can be an equity gift. We don’t need the customers to put in any form of their own cash. A lot of high street lenders will still expect that first-time buyer to have that 5%, but we don’t. So that 10% can be gifted or it can be a personal loan. We think that will help.

Read more: Mortgages for the LGBTQ+ Community

Customers with Adverse Credit

And the typical customer, Gy, that would come to Tandem would be somebody who’s had some form of negative mark on the credit file. I call it selective absence. It’s normally maybe being at university, being in a mix-up of addresses, or a bit of lack of knowledge. I mean this is why I think we need more education in schools to explain the importance of being on the voter’s roll and keeping up your credit profile.

So, if you’ve got late payments on credit cards, you’ve had CCJs or a default, or maybe you’ve even been bankrupt or on an IVA, there will always be a solution that Tandem Bank can offer to help you and your loved ones enter the housing market for the first time.

Supporting Homeowners with Challenges

• Options for those with a less-than-perfect credit history.
• Specialized remortgage solutions to reduce financial strain.
• Flexible approach to help families regain stability.
• Commitment to providing security and reassurance.

The Government’s Role

Challenges for First-Time Buyers

You may also consider current government schemes like Help to Buy or Stamp Duty exemptions, which can make the process easier for first-time buyers.

It’s absolutely fantastic, Roger, so we covered off some key things there, so not only personal loan as a deposit, but also if you’ve got some adverse credit in the past as well, a lender like Tandem Bank is willing to help you get onto the property ladder.

So, Roger, got another question for you: we mention at the moment it is difficult for first-time buyers to get onto the property ladder. I’m a keen believer, and I think that the government could possibly do more to help these first-time buyers get a property. What do you believe that the government can do to help boost first-time buyers getting onto the property ladder?

Government Initiatives and Planning Reform

Data shows that in high-demand areas like London, average deposits are becoming increasingly difficult for first-time buyers to gather, highlighting the need for planning reforms.

Well, realistically, I think the government are really challenged in that point. They’ve given zero stamp duty, so I think that in itself, for the main, that’s really helped them. The affordability is a real concern, which isn’t government-related; it’s regulated-related, and it’s about do we increase the LTV caps and the income multiples. That’s not really a government issue; I think that’s a regulatory issue.

But the last would be how you completely change the planning licensing rules. Prior to 1951, when planning was given on land, a good percentage of that land value went back to the local authority for infrastructure, schools, and it was a much more balanced view. Now, when it comes to planning, it’s the landholder who ultimately makes the money, and the builders.

I think now we need to create a balance in that share play when it comes to who makes the money from a planning application, and it needs to go back in the favor of, I think, the first-time buyer. I think until we change our planning rules, we are never really going to make it affordable, specifically people in the South.

That’s where the challenges come from. It depends on where; if you were buying outside at the moment, it’s not really a problem. I think we got to get a more geographical approach to planning; that’s where I would ask the government.

Remortgaging with Tandem Bank

Why It’s Important in 2025

Yeah, I agree, very much agree, so Roger, we also talked about Tandem Bank and their initiative around remortgages. Remortgages, I believe, is a hot topic in 2025. What are Tandem Bank doing in order to allow more remortgages in 2025?

Support for Homeowners Facing Higher Rates

I think that’s a really good and poignant question, so if you’re watching this video now, which I assume you are, and you bought your first property a few years ago, let’s say three years ago, or you remortgaged three years ago, and you’re on an interest rate just over 1%, your new interest rate could be as much as 5%.

Depending on your circumstances and what you need to do, it could even be higher. Now, what you’ve maybe by experience and knowledge may have taken a more unsecured credit than what you expected. You didn’t expect interest rates to rise as much as they did. The markets didn’t, so it’s not—it’s not you. Everyone was kind of caught out a couple of years ago, and suddenly you realize that your interest rates are maybe going to go up £600–700 a month.

Tandem’s Remortgage Offering

And let’s just say you pick Tandem, thank you very much, and you’re going to do a debt consolidation. We’ll work with you to be able to get that K offered. We won’t charge an upfront valuation or an application fee for properties up to £700,000. Very good. And our legals, we do different to everybody else, we do them in-house. There’s a zero charge for standard remortgage, and all your unsecured credit will pay it off on day completion.

On average, from start to finish, we can do that from speaking to you to completing potentially in two weeks. That can make a real difference because if you’re kept awake at night thinking, “Will the lender say yes? How do I make my next payment? How do I feed the children? How do I restructure my finances?” With your advice and your help, that can be done as quickly as two weeks.

But zero costs when it comes to valuation, application fee, and legal costs. So, something to consider: speed and service, very, very good. And I think we can agree that we need more flexible lenders like Tandem Bank in the marketplace.

Read more: Can I Still Get a Mortgage If I’ve Made Late Payments?

Predictions for Interest Rates

Outlook for 2025

Now, one thing you did touch on, Roger, was you mentioned that interest rates, so potentially coming up, a remortgage at 1% onto 5% interest rates are talked about quite a lot, and they have been over the last 18 months. Yeah, what’s your predictions on the interest rates for 2025, and when do you think that we could see a potential drop in the Bank of England base rate?

Okay, so we’re recording this mid-March at the moment. We just had some really good economic data where the economy had improved by 0.3% recently. The last inflationary figures showed inflation about 4%, was actually 3.96%. So the good news would be expected that the next inflationary figures will see a drop.

Again, though, we have seen fuel costs tick up a little bit, and some of the international shipping trade routes have been disrupted, which will put the cost of materials up. So, what happens in the world does affect interest rates. My prediction would be, I think we will see an interest rate drop in May. Wow. And I potentially could see base rate being down to 4.25% by November.

Longer-Term Stabilization

Now, I’m not cynic, and I’m not saying this is potentially to co-line with a government election, but I think the economic trends would put the potential of a base rate of 4.25% by December. But you will see, as long as another world event, a reduction in interest rates sensibly up to four times this year. You would see a stabilization of interest rates over the next three to four years at about three and a half, 3.75%.

So, it won’t see significant difference rates in what you’re paying now, because lenders are all now being able to buy money with the anticipation of a rate drop. So rates that you’re able to get from you over the next six months will roughly be where they’ll be over the next five years. So none of the good days, like the 1–2% interest rates tour—no, no, we won’t see them come back unless there’s another world event, or we go into a significant recession.

We’re going to see inflation at two, and you will see a base rate at around three, which would give some real stability. So, anyone expecting some big significant drops? No. And house prices have stabilized, and as more landlords exit the market for different reasons, you’ll see more starter homes that are more logical and affordable come on the market. So, good time to buy, confidence, and interest rates.

Advice for First-Time Buyers

Broker vs Bank

Would I be going for a five-year fixed or a two-year fixed? Now, I think that would step into maybe advice, but I know what I would do: I would ring you and ask you.

So, Roger, give you a situation: I’m a first-time buyer looking to get onto the property ladder. What advice would you give me?

Always speak to a mortgage advisor.

So, why not a bank?

Banks do not give advice. If you go into your bank and there’s a mortgage advisor there, first fact: they can’t give advice because all they can do is talk about their products. That’s not advice. When you think of how many lenders in the marketplace, potentially you, as a mortgage broker, you could have up to something like 160 different lenders.

That’s advice. It’s whole of market and coming up with who most likely is going to bid for your business on the day, who’s got the cheapest rate, or are the best overall to pay. So, never go to a bank for advice. That’s why Tandem Bank does not give advice—you can’t come to us direct.

Tandem for Intermediaries

So, if you want to know a bit more about Tandem Bank, go to Tandem for Intermediaries. That is kind of our intermediary website, not our generic website. It really gets you to the mortgages, and there’s some useful information on there. But ultimately, what you want to do if you want the best advice for you and your family is to ring a mortgage broker. And if I was to pick my personal favorite mortgage broker out with 39,380—that’s really, really kind of you to say, so thank you very much.

Conclusion

So, there you go, some great insight into Tandem Bank today, and it’s a pleasure to be joined by mortgage royalty, that is Roger Morris. So, thank you, Roger, for joining Create Finance today.

If you’d like to find out more about getting a mortgage as a first-time buyer, please check out our other content.

Frequently Asked Questions

1. What is the best advice for first-time home buyers?

Always speak to a mortgage advisor. They can give you whole-of-market advice and help find the best deal for your circumstances.

2. What do first-time buyers face the toughest?

The biggest challenges are saving for a deposit and managing affordability, especially with rising interest rates and rents.

3. What is the most important thing when buying a house?

Affordability, location, and getting the right mortgage advice are the most important factors to consider.

4. What gives a house the most value?

Good location, modern amenities, energy efficiency, and strong local infrastructure typically add the most value to a property.

5. What are the three most important things needed for a house?

Deposit, mortgage, and a plan for ongoing affordability are essential for securing a home.