Specialist lender Together has reported a 3.5% fall in its monthly lending compared to the previous quarter, from £279.2m to £269.3m, but figures are up annually, according to its Q1 2024/25 financial update.
The news follows a round of interest rate increases applied across the lender’s deals.
Loan book value rises to £7.6bn
The lender’s loan book grew 3% in Q1 – which covers the three months to September – compared to the previous quarter, from £7.4bn to £7.6bn.
Compared to Q1 2023/24 (covering the three months to September 2023), the value of the loan book is up 14.7% and monthly lending has risen by 20.5%.
The lender noted some increases in arrears.
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Interest receivable and similar income of £214.5m were reported in Q1 2024/25, up 17.3% on Q1 2023/24 and up 3.7% on Q4 2023/24.
Together reported underlying profit before tax of £53.7m, up 12.6% on the same period last year and a 1.3% rise on the previous quarter, which is attributed largely to the increase in net interest income during the period and continued cost efficiency.
Mike McTighe (pictured), chair of Together, said: “While inflation is now close to the Bank of England’s target and interest rates are continuing to reduce gradually, UK economic growth is forecast to remain modest. Against this backdrop and as evidenced by our recent residential property market report, we expect many more customers will be under-served by mainstream lenders and look to specialist lenders, like Together, for support.”
Rates increased across the board
Meanwhile, the lender has increased interest rates on its residential, buy-to-let (BTL) and commercial deals following a rise in swap rates.
In its first charge personal finance range, the specialist lender has increased interest rates by up to 40 basis points (bps).
In the second charge range, increases of up to 135bps have been applied.
Rates on consumer BTL deals, regulated bridging loans and all standard variable rate (SVR) products remain unchanged.
Borrowers using the BTL range that comes with a 2.5% acceptance fee will be subject to an increase of up to 50bps.
Homeowner first and second charge business loans, on a five-year fixed deal basis, have increased by 50bps.
Matt Kelly, senior commercial product manager at Together, said: “Following a sustained period of swap rate increases, led by market expectations that the Bank of England base rate will remain higher for longer and reaction to the recent Budget announcement, we have had to take the decision to adjust rates on a number of our products.
“We remain committed to helping our customers achieve their property ambitions, and will continue to track the market to further adjust our products accordingly.”
Richard Rowntree, managing director of Paragon Bank’s mortgage division, was appointed chief executive of Together in September.
