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Tandem secured loans: at a glance
Tandem offers secured homeowner loans up to a maximum of £250,000. Some lenders offer larger amounts, but with Tandem loans you could borrow up to 95% of the equity in your home, which is more than some lenders we’ve reviewed. Variable and fixed-rate homeowner loans are available.
Homeowner loans are a type of secured loan. With these loans, borrowers use their homes as security for the loan they want to take out. This type of loan is also known as a second charge mortgage. Importantly, using your home as security means it could be repossessed by the lender if you fail to make loan repayments when you should.
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Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a loan or any other debt secured on it. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay. This secured loans comparison and quote service is presented via our partnership with Norton Finance. Data provided is submitted directly to Norton Finance. Nerdwallet Ltd does not form part of the service beyond this introduction.
Tandem Secured Loan
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Available Terms5 to 25 years
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Available amounts£10,000 to £250,000
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Maximum LTV95%
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Rate OptionsFixed and Variable
- Must be at least 18 years old and a UK resident
Think carefully about securing debt on your home. Your home may be repossessed if you do not keep up repayments.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Important information: Neither our review nor star ratings considered lending rates, and therefore does not reflect how much it costs to borrow from these lenders. Always check and compare a lender’s rates against others on the market when considering a secured loan. The rate you are offered will be dependent on your circumstances, loan amount and term, and may differ from the advertised rate. If you have poor credit, only borrow if it is necessary and you can comfortably afford repayments.
Tandem secured loans pros & cons
Pros
- Both variable and fixed-rate loans are available.
- You can borrow up to 95% LTV.
- You can apply for a Tandem loan using its online application form.
Cons
- A higher LTV can be riskier for borrowers.
- Tandem’s website displays limited information about the loans available.
- The maximum loan amount is smaller than other lenders we’ve reviewed.
Tandem loans overview
Tandem is a UK-based digital bank that offers a range of products for both savers and borrowers, from instant access savings accounts to standard mortgages. As a challenger bank, Tandem says it specialises in ‘green’ products designed to benefit the planet. For example, borrowers taking out a secured home loan could get a 0.3% rate reduction if their home has an energy efficiency rating of A, B or C.
Tandem secured loans are available for between £10,000 and £250,000, and up to a 95% LTV. The repayment period, over which you can repay the loan, ranges from between five and 25 years.
| Loan amounts | £10,000 to £250,000 |
| Term length | Five to 25 years |
| Maximum loan-to-value (LTV) | 95% LTV |
| Customer support | Phone, email |
| Trustpilot rating* | 4.3 stars (30 November 2023) |
* Rating relates to Tandem’s brand and its whole product range rather than just its home loan.
Where Tandem secured loans stand out
You can borrow up to 95% LTV
Though there is an increased risk involved in borrowing high amounts against the value of your property, Tandem loans can be taken out of up to 95% of the equity in your property. Other secured loan lenders we’ve reviewed tend to cap loan-to-values somewhere between 75% and 85%. However, keep in mind that the maximum loan amount is £250,000.
There is no minimum property value
Some lenders may require a minimum property value of £75,000 or £100,000, but with Tandem there is no such requirement.
You can apply directly at Tandem’s website
You can apply for a secured loan with Tandem directly using its online application form, whereas some secured loans we’ve reviewed are only available through a broker.
Where Tandem secured loans fall short
Limited information available on its website
While Tandem’s website lists various options and terms available for its secured loan, limited eligibility criteria can only be seen in its FAQs section, where it mentions that other terms and conditions and criteria may apply.
Tandem has confirmed to NerdWallet via email that it offers both variable and fixed-rate home loans, but its website has limited information about the rates you might receive. It also doesn’t mention the maximum LTV online, which it has confirmed to us separately.
Maximum loan amount and term are lower than other lenders
Borrowers could access up to 95% of the equity in their home with a maximum loan amount of £250,000, which is lower than other lenders we’ve reviewed. The maximum term is 25 years, which could make the loan less flexible if you wanted to pay over a longer time frame. Other lenders we’ve reviewed offer 30 years.
What type of loans does Tandem offer?
Secured loans
Tandem offers secured loans in the form of a homeowner loan, which allows you to borrow funds using the equity in your home as security for the loan.
With these types of loans, it may be possible to borrow larger amounts, at potentially lower rates, than you may be able to with an unsecured personal loan. Unsecured loans mean that you’re not required to put forward a high-value asset as collateral for the loan.
However, it’s vital to be aware that with a homeowner loan, the lender has the option to repossess your home if you fail to make your loan repayments when you should.
How much you’re allowed to borrow will depend on the amount of equity you have in your home, your personal circumstances and credit checks Tandem will carry out on you.
» MORE: What is a secured loan?
Home improvement loans
As part of its specialism in ‘green’ products, Tandem offers home improvement loans to make homes more energy efficient.
It offers these loans through Allium Money, which is owned by Tandem. Allium Money is a specialist lender focused on the green energy sector. But you can’t apply for a loan directly – its loans are only available through third parties and brokers.
» MORE: Secured loans for bad credit
What can I use a Tandem secured loan for?
Tandem home loans can be used for a number of reasons, including to:
- consolidate debt
- cover the cost of home improvements
- cover the cost of making improvements to a rental property
- pay for school fees
- pay for a holiday or wedding
- buy a car
» MORE: Secured vs unsecured debt consolidation
Why do people take out secured loans?
Sometimes people find that they have a better chance of getting a secured loan than an unsecured loan, perhaps because they are self-employed or have a bad credit score. What’s more, the maximum amount available through a secured loan is often greater than what’s available through an unsecured personal loan, so they can help to fund larger purchases.
» MORE: What are the differences between secured and unsecured loans?
Tandem secured loan eligibility criteria
Tandem requires you to be a UK resident, aged 21 or over and a homeowner. You can check that you’re eligible for a secured loan without it affecting your credit score.
There is a minimum net monthly income requirement of £1,300 for a single application and £1,600 for a joint application.
Tandem doesn’t require a minimum property value.
» MORE: Should you take out a loan against your house?
Tandem secured loan features
Rates
Tandem offers variable and fixed-rate homeowner loans. With a fixed-rate loan, you get certainty over your monthly repayments for the length of the fixed-rate period. When that period ends, you might be switched to a variable rate, unless you apply for another deal. A variable rate means that your monthly repayment could rise and fall.
Keep in mind that the rate you receive is down to your personal circumstances. Tandem says that it will base it on factors including your credit history, credit rating and financial status.
» MORE: How are fixed and variable mortgages different?
Loan-to-value ratios
It’s possible to borrow up to 95% of the value of your property with a Tandem home loan. However, higher LTVs come with increased risk. While you may be able to borrow a larger amount than would be possible from other lenders we’ve reviewed, you should carefully consider the impact it could have if your financial circumstances change, or property values drop.
Making overpayments
A Tandem home loan allows penalty-free overpayments. Making overpayments can help you shorten the term of your loan, or lower your future monthly repayments.
But it’s important to check the terms and conditions of your loan before making overpayments, because lenders can apply a cap on overpayment amounts before you’re hit by early repayment charges.
Paying off a loan early
If you pay off your loan early, Tandem says it can charge a fee of up to two months’ interest on the outstanding balance from the date you make the payment.
If you think that you might make an early repayment, be sure to check your agreement before signing about the fees you may have to pay and speak to Tandem to clarify any details.
Customer support
Tandem offers customer support over the phone and by email. If the answer to your question isn’t in the FAQs section of Tandem’s website, you’ll be directed to the relevant contact details. There are contact details for new application queries, and existing customer queries, as well as an online portal and dedicated phone number for making payments.
Customer ratings
Tandem has an overall rating of 4.3 stars out of five from more than 3,700 reviews on Trustpilot – a score that the review site equates to ‘Excellent’. Almost two-thirds of reviews have awarded the bank five stars, but nearly 20% of reviews have given a one-star rating.
While the score reflects all the products and services offered by Tandem in the UK, and not solely its homeowner loan product, the average rating of 4.3 stars still reflects positively on the bank.
This information was correct as of 30 November 2023.
How can I apply to Tandem?
You can apply for a Tandem home loan directly at its website. You will need to have your address, employment information and salary details to hand. You will also need to tell them the purpose of the loan.
Alternatively, it’s possible to apply through a broker. The advantage of using a broker is that you can benefit from their guidance and expertise throughout the application process but you’ll need to check if it charges any additional fees for its services.
What information do I need?
When applying for a homeowner loan you should usually be prepared to share:
- proof of your address and identity (a utility bill or bank statement and/or your driving licence or passport will usually suffice)
- recent payslips or a P60 if you’re employed
- self-assessment forms or SA302s if you’re self-employed
- proof of any other income you receive from pensions or benefits
- your latest annual mortgage statement
- information relating to any outstanding debts
- recent bank statements showing your income and expenditure
How long does it take to apply?
Tandem says that it gives a decision in principle in seconds, but the final decision to lend is subject to a full file application and review. The bank has told us that the current turnaround time from full mortgage application to receipt of funds is 13 days.
Tandem FAQs
Tandem Money is the group that owns Tandem Bank. Tandem Money is based in Blackpool.
Tandem is regulated and authorised by the Financial Conduct Authority, the financial services regulator in the UK.
Help if you’re struggling with debt
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing
If you are struggling with debt, you can seek advice from a debt advice service, such as:
- Citizens Advice
- MoneyHelper (formerly The Money Advice Service)
- National Debtline
- StepChange
- The Money Charity
Think carefully about securing debt on your home. Your home may be repossessed if you do not keep up repayments.
Late repayments can cause you serious money problems.
Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
You can view our full review methodology here.
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