Market remains "incredibly competitive"
MPowered Mortgages and Virgin Money have both implemented further reductions in their fixed mortgage rates, continuing a trend of rate cuts in recent weeks following the Bank of England's base rate decision earlier this month.
MPowered has implemented its fourth rate cut in August, lowering rates across two-, three-, and five-year fixed rate products.
For two-year purchase mortgages with a £999 fee, rates now start from 4.57% for loans between 60% and 80% loan-to-value (LTV). Three-year purchase mortgages in the 65% to 80% LTV range have also seen reductions, while remortgage products with no fee now start at 4.30% for five-year fixed rates at 60% LTV.
“The UK mortgage market remains incredibly competitive, all of which is fantastic news for borrowers,” Stuart Cheetham (pictured), chief executive of MPowered Mortgages. “This is the fourth consecutive week that we have reduced our rates, with rates coming down by up to 0.36% over the past month. Our focus remains on providing value across the LTV range by pricing at 5% LTV intervals.
“Looking ahead, overall, we don’t expect any significant changes in mortgage rates in the short term given that a September cut in bank base rate now seems unlikely and future potential cuts are already priced into the swap curve. However, this market is nothing but unpredictable.”
Meanwhile, Virgin Money has also reduced rates across a variety of fixed rate mortgage products.
For purchase mortgages with a £995 fee and £300 cashback, the 85% LTV two-year fixed rate has been dropped by 0.20% to 4.74%, and the 90% LTV two-year fixed rate will decrease by 0.08% to 5.14%. Five-year fixed rates for the same LTV bands have also been reduced.
Virgin Money also adjusted rates on shared ownership, buy-to-let, and product transfer mortgages, with reductions ranging up to 0.28%.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
