MPowered Mortgages has cut fixed rate mortgages by up to 22 basis points (bps).

This is the third time the lender has cut rates in two weeks. 

Five-year fixed rates start at 4.01%, three-year at 4.19% and two-year at 4.41% for 60% LTV with a £999 fee for new purchase customers. The lender has also reduced its SVR from 8.74% to 7.49%.

MPowered’s mortgage product which has seen the biggest fall since the base rate cut is the five-year £0 fee purchase 80% LTV deal, which has been reduced by 57bps.

Last week, the lender announced its new pricing structure by 5% LTV bands which means customers can choose the LTV and rate that most closely associates with their loan size. The new rate reductions apply across the fixed-rate range but are focused specifically on the middle LTV tiers from 65-80%. 

Stuart Cheetham, CEO of MPowered Mortgages, said: “Rates are coming down, and it’s great to be passing on this good news to borrowers. Against a backdrop of falling mortgage rates, we would nevertheless urge borrowers to not be hasty and ensure they speak to a broker so that they make an informed choice about their mortgage.

“Being pulled in by headline-grabbing rates might not necessarily be the best deal when factoring in the other fees. We believe pricing by 5% bands, which we launched last week, is a fairer way to price mortgages, particularly for the majority of customers that fall into the 60-80% LTV band.

“We are pleased to be able to reduce our SVR in response to falling swap rates. We have not just passed on the base rate reduction to borrowers but reduced our SVR by a significant 1.25% since May.”