MPowered Mortgages has slashed fixed rates by up to 0.37% this week, offering a much-needed boost for those looking to buy a home.

In a move designed to benefit a wider range of borrowers, the lender has also introduced new loan-to-value (LTV) tiers. This means that instead of large jumps between LTV bands, borrowers will have more options with smaller 5% increments. This allows for more precise pricing based on the amount of equity you have in your property.

Here’s a breakdown of the new rates:

Five-Year Fixed Rates (with a £999 fee):

• 60% LTV: 4.14%
• 65% LTV: 4.17%
• 70% LTV: 4.19%
• 75% LTV: 4.21%

Two-Year Fixed Rates (with a £999 fee):

• 60% LTV: 4.55%
• 65% LTV: 4.57%
• 70% LTV: 4.59%
• 75% LTV: 4.63%

MPowered Mortgages has chosen to spread its rate reductions across all LTV tiers instead of focusing solely on the lowest LTV products.

According to MPowered’s Chief Executive, Stuart Cheetham, falling swap rates (which influence mortgage pricing) are driving these reductions. He suggests that further rate cuts could be on the horizon as lenders continue to adjust their offerings.

Cheetham explains: “Following the base rate cut and events in the US, swaps rates have started to fall quickly and this is likely to mean further reductions in mortgage rates and more relief to homeowners over the coming days ahead as lenders look to re-price their ranges.”

While inflation and the overall economic climate will play a role in future rate decisions, this recent drop in mortgage rates offers a glimmer of hope for both first-time buyers and those looking to remortgage.