Together is offering reduced rates on its second charge products, to assist more borrowers who have been rejected by mainstream lenders.
The specialist lender’s Prime Plus second charge mortgage has been launched at a rate of 4.29% for capital repayment and at 4.79% for interest only.
The 2-year fixed, limited edition product has been added to the lender’s range, alongside a repriced 5-year fixed second charge mortgage product, which comes with a rate of 4.99% for capital repayment and 5.49% for interest only.
The maximum loan-to-value (LTV) for the lender’s second charge term products, which are initially available for three months, has been raised from 70% to 75%, and the lower rate products are for loans of up to £1m.
Together’s Prime Plus second charge range is available to network and club brokers through the lender’s specialist distributer partners, and for direct customers.
Sundeep Patel, director of sales at Together, said: “We expect demand in the second charge market to grow significantly throughout this year and are refreshing our product offering – including launching our Prime Plus 2-year fixed secured loans – to help our intermediary partners’ clients achieve their ambitions.
“These changes may help borrowers who have been locked out by high street lenders. Self-employed customers, freelancers and contractors, those on zero-hour contracts, retired people and those on benefits, as well as those in full employment, may also fit Together’s criteria for our second charge products, subject to affordability assessments.
“At a time when people’s circumstances may have changed due to coronavirus, we think it’s important that lenders offer flexible criteria and competitive rates to increase the choice available in the market.”
Barney Drake, chief executive of leading brokerage, Specialist Mortgage Group (SMG), said: “These are the type of bold moves the industry needs.
“The combination of higher LTVs and lower rates will result in a significantly wider offering that we can provide to our customers.
“We have been partners with Together for two decades and we know that thriving business at Together equals a thriving second charge market.”