The Discounted Rate product is a tracker that offers a discount on the Together Homeowner Managed Rate plus product margin for two years.
The Discounted Rate is lower than Together’s variable products for personal mortgages and second charge loans.
The lender has reduced its Together Homeowner Managed Rate by 25 basis points (bps) in response to the continuing declining rate environment and, as a result, reduced rates on its first and second charge discounted products by 25bps.
The first charge product will be reduced, with rates starting from 8.8%, down from 9.05%.
At the same time, second charge rates will be lowered to start from 9.49%, down from 9.74%.
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Flexibility for borrowers
Ben James, head of products at Together, said: “We launched our innovative Discounted Rate mortgage range to offer flexibility for borrowers who wanted a mortgage where the rate could reduce over the term.
“The declining rate environment has meant we have been able to pass this lower cost of borrowing on to our customers. This most recent reduction means there is now a 30 basis points difference between our lowest priced first charge two-year discounted product and our lowest priced first charge two-year fixed product.
“With many economists expecting the base rate to continue to decrease in 2025, the reduced rates should offer more choice for customers who may want to benefit from further reductions in the future.”
The Discounted Rate mortgage product is available on first charge mortgages for first-time buyers, shared ownership, Right to Buy and customers looking to remortgage.
For second charge mortgages, it is available for borrowers looking to consolidate debt or carry out home improvements.
