Specialist lender Together has lowered its residential and buy-to-let mortgage rates to support more borrowers as the stamp duty holiday is phased out.
The finance group has brought back its lowest rate of 3.59 per cent for its two-year fixed Prime Plus mortgage product for capital repayment, and 4.09 per cent* for interest only as it returns to pre-Covid lending volumes.
Together’s five-year fixed Prime Plus mortgage, which had initially been a limited edition product, is now available to the whole of the market on a permanent basis, following feedback about its popularity from brokers and customers. The headline rates for the five-year fixed are 4.99 per cent for capital repayment and 5.49 per cent for interest only.
In addition, the specialist finance firm has introduced its lowest ever rate of 4.99 per cent on its standard buy-to-let (BTL) and consumer buy-to-let (CBTL) first charge products, and 5.99 per cent across BTL and CBTL second charge products.
The rate reductions have been introduced to support borrowers as the threshold at which stamp duty is charged fell to £250,000 on July 1, with it returning to the pre-pandemic level of £125,000 in September.
Pete Ball, personal finance CEO at Together, said: “We’re delighted to be able to re-launch our lowest ever residential mortgages in response to a strong market demand from potential borrowers who may not be able to access loans through mainstream channels. The residential property market has performed incredibly well during the Covid-19 crisis, boosted by the Government support through stamp duty tax breaks. However, as this help starts to taper out, there will be many borrowers who are in the market for more competitive mortgage products to meet their individual circumstances – and to help them realise their home-owning ambitions.”
The mortgages are for amounts of between £50,000 and £500,000 at up to 75 per cent LTV (up to £1million up to 60 per cent LTV) and are for standard and non-standard properties.
Self-employed customers, freelancers and contractors, workers on zero-hour contracts, retired people and benefits claimants, as well as those in full employment may also fit Together’s criteria for its re-launched product range, subject to an affordability assessment.
The lender will consider applications from customers with CCJs settled for at least two years as eligible for the lower Prime Plus rates, as well as borrowers who have missed one first or second charge mortgage payment from more than one year ago.
Together’s lowest ever BTL rate will be available to individuals, portfolio landlords, sole traders, partnerships, limited companies and LLPs for standard construction properties, including HMOs, ex-council flats and maisonettes up to six storeys, and are for loan sizes of between £50,000 and £2million. Its lower-rate CBTL product is available for loans of between £50,000 and £250,000.
Marc Goldberg, commercial finance CEO said: “We have reduced the rates for our standard BTL range on the back of an extremely positive reaction from the market and invaluable feedback from our intermediary partners. We see BTL as a key driver as we grow our lending back to pre-pandemic levels. These recent changes will provide and even more competitive offering from Together, meaning we can provide more landlords and investors with the finance they’re looking for.”