Together launches flexible discounted rate mortgage

By Bridging Loan Directory 26th July 2024

Property lender Together has today (July 26) launched a new discounted rate mortgage to offer greater flexibility for its personal finance customers.

The Discounted Rate mortgage is a tracker mortgage, which offers a discount on their Together Managed Rate, plus product margin, for a period of two years that is at a lower interest rate than the variable rate products for personal mortgages and secured homeowner loans.

The product is designed for people who don’t currently want to fix their mortgage rate due to high interest rates, don’t expect to repay the loan in full during the two-year period, and want a mortgage where the rate could potentially reduce over the term.

It can used for first charge mortgages, including first time buyers, shared ownership, right to buy, and second charge mortgages, including debt consolidation and carrying out home improvements.

Tanya Elmaz, director of intermediary sales said:

“At Together, we are keen to show that we maintain a healthy appetite for lending despite the economic turbulence the market has experienced over the past couple of years.

The new discounted rate will give our customers the opportunity to make the most of the fluctuating market, with many economists expecting a downward rate environment over the next few months.

Common-sense lending is at the heart of our ethos at Together, and our customers and partners are key to every decision we make.

This new product will give more options to customers who want to see their payments move with market rates as an alternative to fixed rates which have dominated the market recently.”

Repaying the mortgage in full during the two years will mean paying an Early Repayment Charge (ERC) of 3% in year one and 2% in year two.

Together has also announced a number of other changes across its product range, as well as enhanced its affordability calculator.

It will be allowing cross-charging against an existing buy-to-let security for regulated bridges, in line with customer needs.

Additionally, the property lender has increased its refurbishment window on bridging loans from four weeks to eight, giving customers extra time to complete renovation projects before the property is marketed.

Finally, Together has increased its maximum loan size across second charge loans, first and second charge CBTL (consumer buy-to-let) loans and first charge regulated bridging loans.