Together cuts discounted mortgage rates

Together has lowered rates on its discounted rate mortgage products, following a reduction in the Bank of England’s base rate.

The discounted rate mortgage is effectively a variable tracker, which offers a discount on the Together Homeowner Managed Rate (THMR), plus product margin, for two years.

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

The lender has now reduced its THMR by 25bps in response to the Bank of England’s decision to cut the base rate to 5% in August – the first reduction since March 2020.

As a result, the rates of its first and second charge discounted products have also reduced by 25bps. The first charge product will be reduced with rates starting from 8.85%. Second charge rates will be lowered to start from 9.15%.

Tanya Elmaz, 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.

“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.”