Two-year discounted rates are now 30bps cheaper than fixed first charge rates
Specialist property lender Together has lowered rates on its Discounted Rate mortgage products by 25 basis points (bps), effective from today, December 13, in response to the declining rate environment.
The Discounted Rate product is a tracker mortgage that offers a discount on the Together Homeowner Managed Rate (THMR), plus a product margin, for two years. The updated rates now start at 8.80% for first charge mortgages, down from 9.05%, while second charge mortgage rates begin at 9.49%, reduced from 9.74%.
“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,” said Ben James (pictured), head of products at Together. “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 30bps 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 product is available on first charge mortgages for first-time buyers, shared ownership schemes, right-to-buy borrowers, and those seeking to remortgage. It also applies to second charge mortgages for debt consolidation or home improvement purposes.
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