The discounted rate mortgage works like a variable tracker, offering a discount on the lender’s homeowner manager rate plus product margin for two years.

The two-year discounted rate has a lower interest rate than the firm’s variable rate product for Together’s mortgages and secured homeowner loans.

The homeowner manager rate has been cut by 0.25% following the cut to the base rate in August.

First and second charge discounted products have also been cut by 0.25%; the first charge deal will start from 8.85% and second charge rates will begin from 9.4%.

Tanya Elmaz (pictured), director of intermediaries at Together, said: “We’re pleased that we’re able to pass on the lower cost of our own borrowing to our valued customers through our broker network.

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“We launched our innovative discounted rate mortgage range to offer flexibility on rates for borrowers who didn’t expect to repay the full loan amount during the initial two-year period but wanted a mortgage where the rate could reduce over the term.

“We have seen the first base rate cut in more than four years and our discounted rate product gives our customers the opportunity to make the most of this.

“Many economists are also expecting this downward rate environment to continue, with further base rate reductions possible through 2024 and 2025, meaning customers who have taken out this product may see further savings on their borrowing costs.”

Together recently upsized its bridging facility to £600m and also lowered personal and commercial product rates.