The discounted rate mortgage is a tracker product that gives borrowers a discount on the Together managed rate, plus product margin, for two years. This is a lower interest rate than its existing variable products for personal mortgages and secured homeowner loans. 

The Together managed rate is a variable rate set by the lender that varies depending on certain circumstances, while the product margin is a fixed interest rate that does not change over the life of the mortgage. 

Together said the discounted rate product would be suitable for people who did not want a fixed rate because of higher mortgage rates and were not planning to repay the full loan during the two-year period. It will also suit borrowers who want a mortgage where the rate could potentially reduce over the term. 

The product can be 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. 

If borrowers do repay the mortgage in full over the two-year period, they will pay an early repayment charge (ERC) of 3% in the first year and 2% in the second year. 

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Tanya Elmaz (pictured), director of intermediary sales at Together, 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.” 

She added: “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.” 

 

Other product changes at Together 

As well as the addition of its discounted rate product, Together has made other amendments to its offering and enhanced its affordability calculator. 

The lender will now allow cross-charging against an existing buy-to-let (BTL) security for regulated bridges, which is when a borrower takes a loan against two properties. 

Together said this was in line with customer needs. 

It has also extended the refurbishment window on bridging loans from four weeks to eight, giving customers extra time to complete renovation projects before the property is marketed. 

The maximum loan size on second charge loans, first and second charge CBTL (consumer BTL) loans and first charge regulated bridging loans have also been raised. 

In June, Together reported a record month of lending for the business.