MPowered Mortgages has reduced its fixed rate range for the second time in a week.

It has also launched what it says is a fairer way of pricing of residential mortgages, by 5% LTV bands, that better reflects a borrower’s individual LTV risk.

The lender has cut rates by up to 0.37% across its fixed rate range. With rates available in 5% LTV price points, customers can choose the LTV and price that most closely associates with their loan size.

For example, in five-year purchase £999 fee, rates now start from 4.14%/4.17%/4.19%/4.21% for 60%/65%/70%/75% LTVs. The same also applies for two and three-year fixed, with two-year fixed £999 now starting from 4.55%/4.59%/4.61%/4.63% for 60%/65%/70%/75% LTVs.

Stuart Cheetham, CEO of MPowered Mortgages, said: “We are pleased to be able to reduce rates so soon after last week’s base rate announcement. 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 re-price their ranges.

“Additional rate cuts will be dependent on inflation and the general economic outlook over the weeks and months ahead but there is real hope on the horizon for borrowers as the general trend looks to be downwards. However, the extent and timing remain uncertain for now.”

MPowered claims that is the only prime lender to offer fixed rate mortgages in 5% LTV segments from 60%-80% LTV.

Cheetham adds: “Given that over one-third of the mortgage market to 80% LTV is between 60% and 75% LTV we find it incongruous that the market at large is not pricing for risk between these LTVs. Across our fixed rates we offer stepped pricing between LTVs as quite simply, it is fairer for the customer.”