MPowered Mortgages has announced its second round of fixed rate reductions since the so-called ‘Liberation Day’ tariff policy shift by President Trump, with new pricing across two, three and five-year products now starting at 3.92%.
The mortgage lender will implement the cuts from 9am on Friday, 25 April, in direct response to the recent drop in swap rates. These market rates have fallen sharply since the US president’s announcement regarding import tariffs, triggering widespread speculation about the future path of inflation and monetary policy.
“Swap rates, which mortgage lenders base their mortgage rate pricing on, have continued to fall in the past couple of weeks and we are now starting to see some of the best mortgage rates in well over a year as a result,” said Stuart Cheetham, chief executive of MPowered Mortgages.
“Swap rates, especially for shorter term fixed options, have fallen by over 30bps since Donald Trump’s announcement and two-year swap rates are now at the lowest level we have seen for over 12 months.”
NEW PRICING
Under the new pricing, two-year fixed rates for purchase customers now begin at 3.99% at 60% loan-to-value (LTV) with a £999 fee, and 4.24% with no fee. Three-year fixes start at 3.92% with a fee, or 4.13% without, while five-year fixed deals now start at 4.09% and 4.23%, respectively, under the same LTV and fee structure.
While the swap markets have already priced in three Bank of England base rate cuts this year, Cheetham warned that the wider economic outlook remains murky. “The potential of cheaper imports from Asia, and a weakening of the US dollar could mean inflation falls faster than forecast which would allow the Bank of England to cut the base rate even further and faster,” he said.
He added that sluggish UK growth could exert further downward pressure on swap rates later in the year and into 2026, with some analysts forecasting a potential base rate of 3.0% if economic data continues to underwhelm.
Although falling rates may offer further relief for borrowers, Cheetham cautioned that limited housing stock may drive property prices higher. “We could start to see house prices rise substantially given ongoing housing supply constraints,” he said.
