Fixed rate cuts announced by MPowered Mortgages

July 18, 2024 by Brendan O'Neill

Lenders

MPowered Mortgages is cutting the rates across its entire slate of fixed rate two-year products, after it received feedback indicating that potential borrowers were keen on that course of action.

The maximum amount that these rates have been reduced by is 0.13%. The fixed rate two-year loans offered by MPowered that have loan-to-value (LTV) of 60% and fees of £999 now come with a starting rate of 4.93%. That is a big reduction on the previous starting rate of 4.76% and will make these loans much more attractive to borrowers.

Without the arrangement fee, they can now get one of those loans at a starting price of 4.89%. Furthermore, they are available to both first-time homebuyers and people who are looking to move house.

Research that Twenty7tec carried out on behalf of MPowered found that 21% of those moving during the opening six months of 2022 opted for fixed rate two-year deals. By this year, the number doing so had gone up to 38% and monthly searches for products of that type have been rising on Twenty7tec.

Talking to Mortgage Solutions, the MPowered Mortgages CEO Stuart Cheetham said:

“Demand for two-year fixed rates has doubled since the summer of 2022. Growth in demand for two-year fixes is in part due to people becoming more optimistic about the prospect of rates coming down in the future.”

Mortgage advisors who have completed CeMAP courses will be keen to make sure that borrowers understand the deals they’re considering and that they’re affordable for them.