Mpowered Mortgages lowers its all-round fixed mortgage rates in response to swap declines.
The lender’s fixed interest rate for new purchasers includes a two-year fix, starting at 3.99% for a loan value (LTV), and a fee of £999, at 4.24% without fees.
Additionally, the three-year fixed interest rate is now 3.92% when it was 60% LTV, which costs £999 without paying 4.13%.
The five-year fixed interest rate has also been cut to 4.09% of 60% LTV, with a fee of £999 without paying 4.23%.
“The exchange rate, which mortgage lenders based on their mortgage rate pricing has been declining over the past few weeks, and now we are starting to see some of the best mortgage rates that are more than a year away,” said Stuart Cheetham, CEO of MPOPERID MOLTGAGE.
“Severely since Donald Trump announced the announcement, swap rates, especially for shorter regular fixed options, have dropped over 30bps, and now we have seen a low of over 12 months.”
“While the three base interest rate reductions have been priced now for 2025, the macroeconomic background remains uncertain. The potential for importing lower imports from Asia, lower dollar means inflation may be faster than forecasts, which will allow the Bank of England to cut base interest rates even faster.”
“The continued dull growth of the UK economy could have further impact on swap rates in the second half of 2025 and 2026, and if the economy still looks bleak, we can see the base rate drop to 3.0%.
“While this may mean lower mortgage rates are coming, which will be good news for home buyers and those who want to cash out, we can start to see price increases because of ongoing housing supply restrictions.”
