Borrowers and landlords find relief amid volatile market
MPowered Mortgages and The Mortgage Works (TMW) have both announced rate reductions on various mortgage products, providing relief for borrowers and landlords.
MPowered has cut rates across its two-year fixed rate purchase mortgage range for the second time in a week.
Last Thursday, the lender reduced rates by up to 0.15%, and has cut them further by 0.30%.
Two-year fixed rates at 60% loan-to-value (LTV) with a £999 arrangement fee now start at 4.58%, down from 4.63%, and 4.79%, down from 4.89%, with no arrangement fee for new purchasers and home movers.
Three-year fixed rates at 60% LTV with a £999 arrangement fee now start at 4.47%, down from 4.55%, and 4.67%, down from 4.79%, with no arrangement fee. Three-year fixed rates for remortgaging at 60% LTV with a £999 arrangement fee now start at 4.45%, down from 4.48%, including a Legal Fee Saver incentive package.
“Our data has shown that demand for two-year fixed rates has doubled since 2022, so it’s great that we are able to meet this demand by reducing our two-year rates further and faster,” said Stuart Cheetham (pictured left), chief executive of MPowered Mortgages. “Cutting our three-year rates is also an important move so that borrowers have as much choice as possible.”
Meanwhile, TMW has reduced rates on selected switcher mortgage products by up to 0.20%.
The new buy-to-let switcher rates include a two-year fix at 3.89% with a 3% fee, available up to 65% LTV and reduced by 0.10%; a three-year fix at 3.99% with a 3% fee and reduced by 0.15%; a five-year fix at 3.99% with a 3% fee and reduced by 0.15%; and a five-year fix at 4.24% with a £3,995 fee, reduced by 0.20%.
Complete details of all rate adjustments can be found on TMW’s website.
“We are continually looking to support our existing landlords, and with rates now starting from 3.89%, these latest reductions will provide some welcome relief by lowering repayments and supporting their cashflow,” said Joe Avarne (pictured right), senior manager of buy-to-let mortgages at The Mortgage Works.
Both lenders’ rate cuts come as the mortgage market remains volatile, with borrowers advised to consult with brokers to navigate the changing landscape.
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