Together cuts right-to-buy and shared ownership rates

Together cuts right-to-buy and shared ownership rates

Together has cut interest rates on right-to-buy and shared ownership mortgages as part of a review of its personal finance offering.

The specialist lender has launched its lowest-ever variable rate of 4.85 per cent for council and housing association tenants looking to purchase their home through the right-to-buy scheme, which is available for houses and bungalows valued at more than £125,000.

It has also cut rates on its five-year fixed rate right-to-buy mortgage to 5.6 per cent, with a maximum loan-to-value (LTV) of 65 per cent.

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Reductions on shared ownership loans mean borrowers can take out a variable rate at 5.99 per cent and a five-year fix at 6.74 per cent.

The maximum LTV for shared ownership loans is 75 per cent.

Together has also boosted its support for accidental landlords, increasing the maximum loan amount available to £2m on consumer buy-to-let first charge mortgages and raising the maximum LTV to 75 per cent.

This has been accompanied by rate cuts of up to 1.15 percentage points across its consumer buy-to-let range.

Pete Ball, personal finance chief executive at Together, said: “As a specialist lender, we assist customers who may not be able to access finance on the high street, for a variety of reasons; ranging from the self-employed to those with a less-than-perfect credit profile or an unusual property type. 

“Non-standard purchases, such as right-to-buy and shared ownership mortgages are another area of expertise for us and we’ve seen the positive impact that these schemes have had on helping aspiring homeowners onto the property ladder.”

Michelle Lawson, director at Portsmouth-based Lawson Financial, said: "It is good to see them doing something for right-to-buy and shared ownership.

"Together are a niche lender. They are great for people with poor credit, but the majority of clients will be able to be placed elsewhere."