Further cuts expected over the coming days
Three more lenders have announced reductions in mortgage rates, responding accordingly to the recent Bank of England decision to lower the base rate by 25 basis points (bps).
MPowered Mortgages has cut rates across its fixed rate range for the second time in a week, reducing rates by up to 37bps.
The fintech lender has also introduced a new pricing model that segments loans by 5% loan-to-value (LTV) bands. This structure, unique among prime lenders, allows customers to choose rates that more closely align with their LTV, providing what the company describes as fairer pricing for borrowers.
Rates on its five-year purchase product with a £999 fee now start from 4.14% for 60% LTV, with similar reductions across two- and three-year fixed products.
“We are pleased to be able to reduce rates so soon after last week’s base rate announcement,” said Stuart Cheetham (pictured left), chief executive of MPowered Mortgages. “Following the 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 reprice their ranges.”
Gen H has also implemented sweeping rate cuts, ranging from 15 to 30bps across its entire product line. The lender, which is offering these new rates exclusively through intermediaries, has reintroduced 4% rates at select LTV levels.
Notable reductions include a 25bps drop on its two-year 60% LTV product and a 30bps decrease in its retention range for existing customers.
“I’m delighted to introduce these rate cuts off the back of last week’s base rate move, not just for the benefit of first-time buyers or home movers but for our existing customers as well,” said Pete Dockar (pictured centre), chief commercial officer at Gen H.
“We’ve also taken this opportunity to reduce our standard variable rate and base rate trackers, because in this environment, it’s critical that lenders support all customers, including those who choose to remain on revert or variable deals.”
Meanwhile, The Mortgage Works (TMW) has lowered rates by up to 45bps across its buy-to-let range.
TMW's new rates start from 3.49% for a two-year fixed rate at 65% LTV with a 3% fee. Other notable reductions include a 25bps cut on its five-year fixed rate for limited company buy-to-let at 70% LTV, bringing the rate down to 4.59%.
“We are pleased to announce more rate cuts as it further demonstrates our ongoing commitment to brokers and landlords,” said Joe Avarne (pictured right), senior manager of buy-to-let mortgages at The Mortgage Works. “These latest reductions make us one of the most competitive buy-to-let mortgage lenders in the sector with rates now starting from 3.49%.”
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