MPowered Mortgages has announced its second rate cut for three-year fixed mortgages in November, lowering rates by up to 0.12%. This follows a reduction earlier in the month, bringing the total decrease to 0.29% in November alone.
The reductions, which apply to both new purchase and remortgage customers, mean the lender’s three-year fixed rates now start at 4.09% for 60% LTV with a £999 fee, or 4.27% with no fee. The new rates take effect from 5.30pm today, Friday 29 November.
Stuart Cheetham, CEO of MPowered Mortgages, said the lender had managed to buck the trend of rising rates by adopting a cautious approach to pricing. He explained: “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.”
Cheetham added that the cuts could help borrowers amid uncertainty around mortgage rates in 2025. “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 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.”
