Specialist lender Together has launched its lowest residential mortgage rate, a 2-year fixed prime plus product at 3.59% for first charge mortgages up to 75% LTV and for those remortgaging up to 70% LTV.
Interest-only and capital repayment options are available and they come with a fixed £1,495 non-refundable arrangement fee, early repayment charges of between 2% and 3% of the balance outstanding and a 5% overpayment allowance.
The limited edition mortgages are available for amounts of between £25,000 and £1m (loans of between £500,000 and £1m at less than 60% LTV) for standard and “non-standard” properties, which could include apartments on the sixth floor or above.
Anthony Rose, owner and director of LDNfinance, said: “It is great to see rate improvements supporting a sector that has been traditionally underserved.
“There are a large number of clients who don’t fit within mainstream lender’s criteria so having more attractive options on offer will allow more transactions to become viable as well as improving affordability for people who take out these loans.”
Richard Tugwell, group intermediary director at Together, said: “We’ve launched our lowest ever residential mortgage rates in response to what we believe is a strong market demand from would-be customers who have had some adverse credit in the past.
“For example, they may want to purchase a new home or remortgage their current property but may not be able to because they have historical defaults or CCJs – which may mean mainstream lenders will not even consider their application.
“Customers could also be buying a home of non-standard construction, such as one made predominantly of steel or glass, or an ex-council flat, all of which could make it difficult for them to get finance from high street banks or building societies.
“This product range, with a competitive rate of 3.59% will mean they could get an affordable mortgage, even if they don’t fit the strict criteria of the mainstream – to help them realise their home-owning aspirations.”
Self-employed customers, freelancers and contractors, those on zero-hour contracts, retired people and those on benefits, as well as those in full-time employment may also fit Together’s criteria for its prime plus product subject to an affordability assessment.
Together will consider applications from customers with County Court Judgments (CCJs) which have been settled for at least two years as eligible for the new rate, as well as borrowers who have missed one first or second charge mortgage payment from more than one year ago. The new product comes with a free standard valuation and lender legals.
The products have been released to brokers working with Together’s trusted brokers, network and club partners, specialist distributers and intermediaries, professionals, and introducers, who can access the new rate through Together’s online portal, My Broker Venue (MBV).