MPowered Mortgages has announced cuts to selected three-year fixed mortgage rates, bucking the recent trend of rate hikes across the market as swap rates continue to climb.
The lender is reducing its rates from 9.00am on Monday 2 June. The move comes despite two weeks of steady increases in swap rates, which have been driven by stronger than expected economic data, including GDP and CPI figures, as well as wider trade dynamics.
For new purchase customers, those with a 35% deposit will now be able to access a three-year fixed rate of 3.93% with a £999 fee, while customers putting down a 20% deposit will see a rate of 4.25%, also with a £999 fee. MPowered has also reduced rates for remortgage customers across a range of loan-to-value bands.
Peter Stimson (pictured), director of mortgages at MPowered Mortgages, said the decision to cut rates rather than raise them was part of a strategy to align pricing more closely with the swap curve, rather than responding after the fact.
“Our three-year fixed rates offer exceptional value in the market at present,” said Stimson. “Whilst many other lenders have been increasing rates in response to rising swaps and have been effectively playing ‘catch up’, we have chosen to price our products closer to the swap curve which has allowed us to make further cuts to our mortgage fixed rate range.
“We feel three-year products offer a good choice for many customers, not only in terms of offering some great rates, but also in terms of offering customers a real alternative for those caught between the uncertainty of choosing a two or five-year product.”
With no clear sign of when swap volatility might settle, MPowered has warned that today’s rates may not last, urging borrowers to act promptly and seek professional advice.
“Swaps are still volatile and there is no guarantee how long current deals will be around, so you may need to act fast if you want to secure a deal at today’s rates. We would urge borrowers to always speak to a broker first before deciding on a mortgage deal especially during this period of uncertainty,” added Stimson.
