Together cuts minimum second charge loan size to £20,000

Together said that the change to its minimum second charge loan size would include people who have spent on credit and store cards, taken out loans over the festive period or looking for small loan sizers.

Two and five-year fixed rates, which are available for those with no demerits in the last 12 months in its Prime Plus range, begin from 12.2 per cent and 10.35 per cent respectively.

The product’s arrangement fee has been cut from £1,495 to £995, with commission remaining stable at two per cent.

Smaller loans can be secured against non-standard properties and self-employed clients and those with complex incomes will be considered.

Rates for loans between £50,000 and £250,000 have been cut and begin from 8.99 per cent for the lender’s five-year fixed prime plus product and 9.24 per cent for customers with up to three demerits in the past year.

Smaller second charge loans to help consolidate debt

James Briggs (pictured), head of intermediary sales at Together, said that the group’s smaller loans may be able to help borrowers consolidate unsecured debt at a cheaper rate, allowing borrowers to take “greater control” of their household finances.

He continued: “Many borrowers will have overspent on credit and store cards over the Christmas period, which will have put more pressure on household finances caused by the cost-of-living crisis which, thankfully, is showing signs of easing slightly.

“Our smaller second charge loans will be available for broker’s clients, to help support them in moving away from more expensive lines of unsecured credit, to a secured loan, with a single, manageable monthly repayment and a product end date. This may, for the right customer, give them greater control of their overall expenditure.”

Briggs added: “Our smaller loans may be suitable for customers who are finding it harder to qualify for further advances as high street banks tighten their criteria, or for people who currently have a low rate on their first charge mortgage, which they don’t want to disturb.

“We hope to meet the ambitions of our broker partners by offering more options for clients seeking Together’s flexible product offering.”

In December, Mortgage Solutions reported that Together had upsized its Highfield Asset Backed Securitisation 1 Limited (HABS) warehouse facility from £200m to £725m as it continued to diversify funding.