MPowered Mortgages has reduced all of its two and three-year fixed rate mortgages for new purchase and remortgage customers by up to 28 basis points (bps).

For new purchase customers, MPowered’s two-year fixed rates now start at 4.21% for 60% LTV with a £999 fee and three-year fixed rates start at 4.19% at 60% LTV with a £999 fee.

All rates across the two-year range are reducing by at least 14bps with most by at least 20bps.

The new rates are effective immediately.

SVR CUT

These reductions follow MPowered Mortgages cutting its SVR last week by 75bps to 6.74% (BBR +1.99%).

“There are still a number of headwinds out there which can impact the cost of a mortgage over the months ahead”

Stuart Cheetham, CEO of MPowered Mortgages, said: “The market has been very volatile of late, so we are pleased to be one of the few lenders who is reducing rates at time when many others seem to be raising rates.

“Today’s reductions follow an announcement last Friday of a significant 0.75% [sic] reduction to our SVR to assist both new and existing borrowers.

“Whilst we are reducing our rates, we would urge borrowers to remain cautious and seek independent advice before choosing a mortgage.

“There are still a number of headwinds out there which can impact the cost of a mortgage over the months ahead and the direction of mortgage rates remains uncertain.”