Together has overhauled its second charge mortgages – introducing new fixed-term products and its lowest ever rate on some secured loans.
The lender has introduced cuts to its second charge Prime Plus range, with rates for residential borrowers starting at 5.19 per cent at a maximum 65 per cent loan-to-value (LTV).
It announced today that it is introducing new maximum borrowing limits as well as adding new two and five year fixed rate second charge mortgage products on its Prime Plus plans, for near prime borrowers, following feedback from brokers.
Richard Tugwell, pictured, intermediary relationship director at Together, said:
“We’re delighted to be able to offer our brokers’ clients larger second charge mortgages, some at our lowest ever rates and believe this shake-up of our Prime Plus range will make us even more competitive in the market.
We’re constantly working with our partners to launch new products and improve those we already have and many brokers we’ve worked with had said that the new fixed-rate second charge products would be a great addition to our second charge range.”
Although a second charge isn’t always the right solution, in some cases it can be, so brokers should be looking at this type of lending as a viable option to remortgaging when advising their clients.”
Together’s new two year fixed products will start at 5.89 per cent and five year fixed at 6.39 per cent.
Meanwhile, the lender is doubling its maximum Prime Plus second charge loan sizes to £150,000 at 77.5 per cent LTV and to £200,000 at 75 per cent LTV.
Andy Pelley, director at The Loan Partnership, a leading second charge mortgage broker, said:
“Over the last few years, we’ve seen a rising demand for second charge borrowing as people begin to better understand the flexibility of these kinds of products. We believe Together’s amendments will make second charge mortgages even more attractive for our clients.”
The latest figures published by the Finance and Leasing Association (FLA) revealed a 17 per cent rise in value – and 13 per cent in the volume – of second charge mortgage business in November, compared to the same month in 2018.
There were 2,594 new loan agreements that month, totalling £116million in value, according to the data released last month (January).