MPowered Mortgages, the lender issuing instant offers, for the second time in two weeks has cut its three-year fixed rate mortgages for new purchase and remortgage residential customers.
Two weeks ago, the lender cut both its two and three-year fixed rates by up to 0.28%. Today it cuts its three-year fixed rates by up to a further 0.12%, meaning rates have come down by up to 0.29% in November alone.
Stuart Cheetham, CEO of MPowered Mortgages says we are being asked just how we are able to cut or even hold rates when the large majority of lenders are upping rates at this moment in time. He explains: ” The market went completely out of sync in mid-October to early November with what we thought was some very irrational pricing by lenders who decided not to follow the swap curve on its upwards trajectory. The result we feel was likely to have been some very marginal/unprofitable lending. We deliberately kept our powder dry and can as a result launch very competitive rates by pricing consistently when others are now having to try and recover positions.”
For new purchase customers, the lender’s three-year fixed rates now start at 4.09% for 60% LTV with a £999 fee and 4.27% with no fee. The new rates are effective from 5.30pm, today, on Friday 29th November 2024.
Cheetham adds: “For anyone remortgaging or purchasing a property near the Christmas period this environment of increasing rates is somewhat unsettling especially when as we know Christmas is for most an expensive time of year especially given the extra cash needed to fork out for presents for our families and friends. We are one of the few lenders that are reducing rates right now. The outlook on the path for mortgage rates in 2025 still remains very much uncertain and we would always urge borrowers to remain cautious and seek independent advice before choosing a mortgage.”
