MPowered Mortgages has reduced its three-year fixed rate residential mortgage range by up to 0.45%, with rates now starting from 5.79%.

This follows the lender cutting rates across its two-year range last week by up to 0.36%.

For remortgage applications, rates on its three-year fixed mortgages with a £1,999 arrangement fee now start at 5.79% (6.24% previously), and at 5.94% with a £999 arrangement fee (previously 6.34%). For purchase applications, three-year fixed mortgages start from 5.84%.

Stuart Cheetham, CEO of MPowered Mortgages, said: “Swap rates have dropped substantially in the last 10 days. We are therefore taking the opportunity to reduce another fixed rate range, pass the benefit of improving swap rates to borrowers.

“Whilst we hope this is good news for borrowers, it’s still a very challenging time to be a mortgage holder or buy a home, so we would urge borrowers to speak to a financial adviser before making any decisions about a mortgage.

“Rates reductions will apply across all three-year product options, including both purchase and remortgage products up to 85% LTV. MPowered offer a choice of fee options including £0 fee options (for purchases only), £500 cashback on all remortgage applications and a free valuation with every application.”