MPowered Mortgages has reduced rates across its two-year fixed rate purchase mortgage range for the second time in a week.

Last Thursday, the lender announced that it had cut two-year fixed rates by up to 0.15 percentage points and has now reduced rates by a further 0.30 percentage points.

Two-year fixed rates at 60% LTV with a £999 arrangement fee now start at 4.58% (down from 4.63%) and 4.79% (down from 4.89%) with no arrangement fee for new purchasers and home movers.

Meanwhile, three-year fixed rates at 60% LTV with a £999 arrangement fee now start at 4.47% (down from 4.55%) and 4.67% (down from 4.79) with no arrangement fee for new purchasers and home movers.

Three-year fixed rates for those remortgaging at 60% LTV with a £999 arrangement fee now start at 4.45% (down from 4.48%) which come with the lender’s Legal Fee Saver incentive package.

Stuart Cheetham, CEO of MPowered Mortgages, said: “Our data has shown that demand for two-year fixed rates has doubled since 2022, so it’s great that we are able to meet this demand by reducing our two-year rates further and faster. Cutting our three-year rates is also an important move so that borrowers have as much choice as possible.

“Whilst it’s great news for borrowers that mortgage lenders are competing as hard as they can on rates and with mortgage rates falling continually over the past couple of weeks, we are not out of the woods yet! Any major rate reductions depend on the Bank of England cutting the base rate and it’s likely this could be pushed back especially if it is revealed that the CPI increases tomorrow. Whilst the future direction of mortgage rates still remails uncertain, we would urge borrowers to remain cautious and encourage them to seek advice from a mortgage broker before choosing a mortgage.”