MPowered Mortgages has announced a reduction in their fixed rate mortgage offers, making home financing a bit more accessible in these challenging economic times. This move includes cuts of up to 0.65% across various mortgage products, which could mean considerable savings for borrowers.
MPowered Mortgages’ latest adjustments span both three-year and two-year fixed rate plans, catering to a wide array of needs, whether it’s purchasing a new home or refinancing an existing loan.
Three-Year Fixed Rate Reductions
For those considering a more stable, long-term commitment, the three-year fixed rates have seen a decrease. Borrowers can now secure a rate as low as 4.59% (previously 4.67%) at 60% loan-to-value (LTV) ratio, albeit with a £999 arrangement fee. For individuals looking to avoid additional upfront costs, the fee-free rate starts from 4.79% at 60% LTV, a slight drop from 4.87%.
For a slightly higher LTV of 75%, rates have also been trimmed to start from 4.89% (previously 4.99%). Remortgagers, in particular, benefit from even lower rates, with offerings starting at 4.49% (down from 4.59%) at 60% LTV with the same arrangement fee.
Two-Year Fixed Rate Reductions
On the shorter side of things, the two-year fixed loans also present an attractive proposition. New purchase rates have dipped to start at 4.84% (previously 4.95%) at 60% LTV with a £999 arrangement fee. For those avoiding the arrangement fee, rates commence from 5.07% (previously 5.17%) at 60% LTV, and rise to 5.19% (previously 5.29%) for 75% LTV.
Remortgagers looking to switch to a two-year plan without an arrangement fee will find rates starting from 5.15% (previously 5.24%) on a 60% LTV, and up to 5.25% (down from 5.39%) for those on a 75% LTV.
Insight from the Inside
Matt Surridge, the Sales Director at MPowered Mortgages, provides some context behind these reductions. According to Surridge, while mortgage rates have been on the rise recently, the latest reductions may signify a turning point. He suggests that despite the persistent inflation, which has delayed anticipated rate cuts from the Bank of England until the summer months, there are hopeful signs of declining rates in the foreseeable future.
Surridge adds, “Whilst we can expect some level of volatility in mortgage rates in the coming weeks, there are positive signs that rates will start coming down in the not too distant future. We are pleased to be one of the first lenders that is able to reduce rates which goes against the current trend which is seeing multiple high street banks and lenders increase rates.”