It has also launched what it says is a fairer way of pricing of residential mortgages, by 5% loan-to-value bands, that better reflects a borrower’s individual loan-to-value risk
MPowered Mortgages has cut its fixed rate range for the second time in a week.
It has also launched what it says is a fairer way of pricing of residential mortgages, by 5% loan-to-value bands, that better reflects a borrower’s individual loan-to-value risk.
The lender has reduced rates by up to 0.37% across its fixed rate range. With rates available in 5% loan-to-value price points, customers can choose the LTV and price that most closely associates with their loan size.
Stuart Cheetham, Chief Executive Officer of MPowered Mortgages, said: We are pleased to be able to cut rates so soon after last week’s base rate announcement. Following the rate cut and events in the US, swaps rates have started to decline rapidly, and this is likely to mean further cuts in mortgage rates and more relief to homeowners over the coming days ahead as lenders look to re-price their ranges.
Additional rate cuts will be dependent on inflation and the general economic outlook over the weeks and months ahead but there is real hope on the horizon for borrowers as the general trend looks to be downwards. However, the extent and timing remain uncertain for now, he said.
MPowered claims that it is the only prime lender to offer fixed rate mortgages in 5% loan-to-value segments from 60%-80% loan-to-value.
Cheetham said: Given that more than one-third of the mortgage market to 80% loan-to-value is between 60% and 75% loan-to-value we find it incongruous that the market at large is not pricing for risk between these LTVs. Across our fixed rates we offer stepped pricing between LTVs as quite simply, it is fairer for the customer.