MPowered Mortgages has announced another reduction in its three-year fixed rates, this time targeting the remortgage market.

The specialist lender has lowered its three-year remortgage rates to start from 3.98% for borrowers with a 40% deposit who opt to pay a £999 fee. For those preferring a fee-free option, rates now begin at 4.27%.

The new remortgage products also come with additional incentives, offering customers either £250 cashback or a contribution towards their legal costs.

Peter Stimson, head of product at MPowered Mortgages, said: “Most of the new products in the last couple of weeks have focused primarily on purchase customers, so we are very pleased to also offer remortgage customers rates that now start with a three and what we believe to be the lowest three-year fixed rate range on the market right now.

“Swap rates have continued to fall over the last week which has allowed us to continue to pass this benefit to our customers in the form of lower rates.”

The move reflects a wider trend of lenders reacting quickly to shifts in swap rates, which have eased in recent weeks, allowing mortgage providers to reduce fixed rate pricing.