In an unexpected move, MPowered Mortgages has cut its 3-year fixed mortgage rates amid rising market uncertainty.
- New purchase customers can now access 3-year fixed rates starting from 3.93% at 60% loan-to-value, with an accompanying fee.
- Remortgage customers are also benefitting, with rates now beginning at 4.08% at 60% LTV, subject to the same fee.
- The company’s decision arrives in anticipation of potential shifts in the mortgage market, resulting from economic and political factors.
- CEO Stuart Cheetham advises borrowers to seek independent financial advice amidst these turbulent conditions.
The financial landscape for mortgages is currently experiencing significant volatility, with many lenders implementing rate hikes due to economic apprehensions. In contrast, MPowered Mortgages has made the notable decision to decrease their 3-year fixed rates by up to 0.30%. This strategic adjustment is effective immediately and aims to enhance their competitive positioning in the market.
Specifically, the new rates for new purchase customers start at 3.93% at a 60% loan-to-value (LTV) ratio, contingent upon a fee of £999. This adjustment offers potential homeowners an opportunity to secure more favourable terms despite the current economic climate.
Similarly, customers seeking remortgage options are offered a revised starting rate of 4.08% at 60% LTV, also accompanied by a £999 fee. This could represent substantial savings for those looking to refinance their existing arrangements.
The backdrop to these changes includes the looming Chancellor’s Autumn Budget and concerns surrounding unfunded tax cuts, which have instigated a reaction in the markets. These factors contribute to the rising swap rates, a key determinant of fixed-rate mortgage pricing, leading to general market uncertainty.
According to Stuart Cheetham, CEO of MPowered Mortgages, the company is responding to these challenges by reducing rates to remain competitive. Cheetham stresses the importance of seeking independent financial advice during such unpredictable times to better navigate potential mortgage decisions.
In light of market instability, MPowered Mortgages continues to offer attractive rates, ensuring it remains competitive.
