MPowered Mortgages has slashed their two-year fixed rates for the second time in a week, offering a glimmer of hope to homebuyers facing a challenging market.

This welcome news comes as a response to soaring demand, with double the number of people looking for two-year fixed rates compared to last year.

What are the new rates?

Here’s a breakdown of the new rates for a 60% Loan-to-Value mortgage:

Two-Year Fixed Rates:

• 4.58% with a £999 arrangement fee
• 4.79% with no fee

Three-Year Fixed Rates:

• 4.47% with a £999 arrangement fee
• 4.67% with no fee

Three-Year Fixed Rate for Remortgaging:

• 4.45% with a £999 fee and a legal fee saver package.

What does this mean for you?

These cuts could mean significant savings for borrowers. It’s a positive sign that lenders are competing to offer the best deals, potentially signalling further rate reductions in the near future.

A note of caution

Stuart Cheetham, CEO of MPowered Mortgages, warns that while these cuts are encouraging, we’re not out of the woods yet. The Bank of England’s base rate decisions will play a crucial role in determining future mortgage rate movements.

Keep an eye out for the latest CPI figures tomorrow – a rise in inflation could mean rate cuts are delayed.