Together has cut its mortgage rates by up to 25 basis points, while Aldermore has reduced home loans by as much as 20bps.

Together has lowered rates on its discounted rate mortgage products, which is effectively a variable tracker that offers a discount on its homeowner managed rate, plus product margin, for two years.

The specialist lender’s homeowner managed rate has been cut by 25bps, and as a result its first and second charge discounted products have been reduced by the same margin.

First charge product will be reduced with rates starting from 8.85%, down from 9.10%. Second charge rates will be lowered to start from 9.15%, reduced from 9.40%.

The move comes after the Bank of England lowered the base rate from a 16-year high by 0.25% to 5% last month, the first cut in four years.

Together director of intermediaries Tanya Elmaz says: “We launched our innovative Discounted Rate mortgage range to offer flexibility on rates for borrowers who didn’t expect to repay the full loan amount during the initial two-year period but wanted a mortgage where the rate could reduce over the term.

“We have seen the first base rate cut in more than four years and our discounted rate product gives our customers the opportunity to make the most of this.

“Many economists are also expecting this downward rate environment to continue, with further base rate reductions possible through 2024 and 2025, meaning customers who have taken out this product may see further savings on their borrowing costs.”

Meanwhile, Aldermore has cut its managed rate, which is its standard variable rate, for residential and buy-to-let mortgages, from 9.73% to 9.53%.

The challenger bank says the move means its discounted variable, term variable rate mortgages and all reversion rates on fixed and discount rate mortgages will decrease by 20bps for the following cases:

New and pipeline cases – for new business and product switch

• From 6 September, all new illustrations and mortgage offers — origination and product switch — will reflect the new managed rate

Existing customers

• From 1 October, all managed rate-linked variable rate accounts will be updated

The bank says it will write to all affected existing customers to let them know their new interest rate and monthly payments.