Rates for loans of between £50,000 and £250,000 have also been cut
Specialist lender Together has announced a reduction in its minimum second charge loan size from £30,000 to £20,000.
The revised loan options, available for various purposes, extend to clients seeking smaller loan sizes, or those planning home improvements. Together’s Prime Plus customers, characterised by a clean record with no demerits in the last 12 months, can now access two- and five-year fixed rate products. The rates for these products commence at 12.20% for the two-year option and 10.35% for the five-year option.
The new offering also comes with a reduced arrangement fee, now set at £995 compared to the previous £1,495, while the commission remains unchanged at 2%.
Furthermore, the lender has expanded the eligibility criteria for the smaller loans, allowing them to be secured against non-standard properties. Together also expressed openness to considering self-employed clients or those with complex incomes, broadening the scope of potential borrowers.
For loans ranging between £50,000 and £250,000, Together has implemented rate reductions, with the five-year fixed Prime Plus product starting at 8.99%, and customers with up to three demerits in the past 12 months benefiting from a starting rate of 9.24%.
“Many borrowers will have overspent on credit and store cards over the Christmas period, which will have put more pressure on household finances caused by the cost-of-living crisis which, thankfully, is showing signs of easing slightly,” James Briggs (pictured), head of intermediary sales at Together, said.
“Our smaller second charge loans will be available for brokers’ clients, to help support them in moving away from more expensive lines of unsecured credit to a secured loan, with a single, manageable monthly repayment and a product end date. This may, for the right customer, give them greater control of their overall expenditure.
“Our smaller loans may be suitable for customers who are finding it harder to qualify for further advances as high street banks tighten their criteria, or for people who currently have a low rate on their first charge mortgage, which they don’t want to disturb.”
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