MAB reports £25.1bn gross mortgage completions fueled by PTs
According to MAB’s latest financial results, this consisted of £18.6bn in new mortgage lending, which is 21 per cent down on the year prior, and £6.5bn in product transfers, which is a 75 per cent increase on 2022 figures.
The report continued that market share of new mortgage lending rose to 8.3 per cent from 7.5 per cent in 2022.
Figures suggest that this is a 50 per cent increase since 2019.
“Much of this outperformance was a clear reflection of how MAB helped ARs and advisers to successfully pivot and focus their efforts largely towards refinance and protection opportunities, in the absence of an active purchase market.
“As a result, adviser productivity remained virtually unchanged despite the significant drop in purchase transactions. The ability to do this on the rare occasion of a major downturn strongly underlines the resilience of MAB’s operating model, and of course any drop in property transactions is typically made up once the housing market recovers,” it explained.
MAB said that its revenue had risen by 3.8 per cent year-on-year to £239.5m. Within that, mortgage procuration fees fell 8.1 per cent year-on-year to £98m, and protection and general insurance commission came to £93.1m, an increase of 13.4 per cent compared to the prior year.
Client fees rose by 19.7 per cent to £43.4m and other income decreased 14.5 per cent to £5m.
Statutory profit before tax came to £16.2m in the prior, a fall of around 6.8 per cent compared to 2022. MAB said earlier this year that it would report a higher adjusted profit before tax due to better than expected trading in the last quarter of the year.
Adviser numbers fall in 2023 but AR recruitment activity ‘strong’ this year
Adviser numbers contracted by four per cent to 2,158, and at post-period end on 15 March adviser numbers stood at 2,135. The latter includes 116 advisers from Fluent.
MAB said that its ARs had more employed advisers than the intermediary sector average and consequently they lowered adviser numbers quickly due to a sharp fall in purchase transactions.
It added that overall fall in adviser numbers was “expected as firms consolidated and focused on efficiency and productivity rather than growth in such uncertain times”.
“We expect a better outcome in 2024, as existing ARs gradually become more confident in a sustainable recovery,” it said.
Revenue per mainstream adviser rose six per cent, which it attributed to a “full-year impact of the acquisition of Fluent”.
MAB said that although it did not expect to see “normal growth in organic adviser numbers” resuming until 2025, AR recruitment activity is “building very strongly and reflects the significant technology and lead generation developments seen at MAB over the last 12 months”.
“We believe our approach and implementation of the Consumer Duty across the business is also a major consideration for firms looking at MAB’s overall proposition,” it said.
MAB lead generation work showing signs of success
On the lead generation side, the firm said that its “investment and developments in early customer capture and nurture, data analytics and customer profiling” was already showing early signs of success.
This includes a growing number of opportunities from existing lead channels, improving lead conversion and identifying “high propensity for requirements of additional products and services.”
The broker said that while it was in the “early stages of implementation” it was going into an “exciting period as we layer additional opportunities of potential customers and their value to MAB into our existing environment”.
It said that its acquisition of Fluent had added price comparison websites and other major national lead sources to its arsenal.
MAB said that the above along with estate agency and new build were its largest lead generation areas, but that leads in these two sectors were mainly done by referral which can be “inconsistent”.
It said it was working on digital customer engagement and research tools to allow MAB to mitigate the reliance on human referral and “general additional opportunities”.
It is also working with its firms to optimize direct customer engagement and acquisition though organic website traffic and social media.
MAB subsidiaries and associates expect a ‘record performance’ this year
MAB said that all its subsidiaries and associates “strengthened their businesses last year” and were in a “good position to capitalise on a recovering market and are expected to resume some level of adviser growth in 2024”.
“Adviser productivity in this portfolio is significantly higher than the average across MAB and continues to build. We expect a record performance from our investments this year, and for them to increasingly contribute to our plans for accelerated profit growth,” it said.
The firm said that it had worked closely with Fluent to “re-balance the business” to better adapt to reduced new business, which saw “significant cost reductions and some key personnel changes”.
It said that while adviser numbers quickly fell, other cost savings and efficiencies continued throughout the year, which would make sure that the “business is in the best possible shape to capitalise on improving market conditions”.
The company said that Fluent had secured a new long-term contract with its largest provider of mortgage leads, which would support new business in 2024/25.
“With a better-balanced cost base, new lead sources and processes, and a strong management team, Fluent is well-positioned for a good recovery in revenue and profits in 2024,” it said.
MAB added that Lucy Tilley had submitted her resignation to the board in January this year and was serving her six months’ notice.
It continued that the “search for her replacement is well advanced and an update will be provided in due course”.
2024 showing ‘early stages of a market recovery’
Peter Brodnicki (pictured), MAB’s chief executive, said that “against a very challenging backdrop in 2023, MAB continued its exceptional track record of outperformance and market share growth in all market conditions.”
He continued: “Despite the severe market downturn, we continued our investment across the entire business and remained resolutely focused on long-term growth.
“Our proposition for growth focused mortgage and protection firms is outstanding, underpinned by best-in-class technology, lead generation and infrastructure, and our aim is to continue to further increase MAB’s differentiation versus our competitors and grow market share and profitability.”
Brodnicki said that the year had “started well” with both purchase and refinancing activity improving “significantly”.
“We believe this signals the early stages of a market recovery that builds towards a catch-up year in 2025, with pent-up demand continuing to be released as consumer confidence and affordability increase,” he added.
Brodnicki said that it expected organic adviser growth to “start building some momentum again in H2” as our AR firms “gain more confidence in the sustainability of the recovery”.
He noted that recruitment activity in terms of new AR firms is “exceptionally strong”, which he said showed the “significant strides we have made in terms of our technology and lead generation developments, as well as how we have engaged with and supported our partner firms with the introduction and integration of Consumer Duty”.
“Following an exceptionally strong year for our most mature investment First Mortgage, strong progress has been made in terms of efficiencies and lead sources in all our other AR investments, with adviser productivity in these firms being significantly higher than our average across the group.
“We expect a record performance from our investments this year and believe the portfolio will contribute to accelerated group profit growth over the medium term,” Brodnicki concluded.
Longer mortgages are being used as short-term means to homeownership – analysis
Earlier this month, data from UK Finance showed signs that the use of longer mortgage terms had been pushed to the limit, as a fifth of first-time buyers in 2023 had loans of 35 years or more.
However, with people getting onto the housing ladder in their early-to-mid-30s on average, there is a chance that they will still be paying off their mortgage well into retirement age.
Speaking to Mortgage Solutions, Adam Wells, co-founder of Lloyd Wells Mortgages, said his firm was seeing a rise in extended mortgage terms, with a “significant” number of people intending to take this into their expected retirement age of between 67 and 70.
Wells said this was partially because current cash flow was seen as “more important than overall cost”.
“With the cost-of-living crisis, people would rather have the lowest monthly payment, even if this costs them more over the term of the mortgage,” he added.
Lewis Shaw, owner of Shaw Financial Services, said it aligned with house prices outstripping wages and added that longer mortgage terms sometimes allowed for larger loans.
He said that elevated, stubborn inflation and higher mortgage rates had “turbocharged the number of borrowers – particularly, although not exclusively, first-time buyers, who are forced into longer terms due to the increased cost of repayments along with the generally increased cost of living that affects us all.”
Shaw said this was pushing mortgages “way past the state retirement age of up to 75 in many cases”.
Dealing with today’s challenges
Backing Wells’ observation, brokers said borrowers were thinking in the here and now.
John Yerou, managing director of Mortgage Quest, said both buyers and remortgagors were going for longer mortgage terms to fit affordability, even though this meant paying more in interest. He added: “What’s the alternative? To sell your house and rent?”
He said when first-time buyers found out the repayments of a 25-year mortgage, they felt it was a “stretch” that would leave them “eating fish fingers and baked beans just to have a roof over their heads. You don’t want people to live like that”.
Yerou said if interest rates fell in the future, there was always the flexibility to shrink the mortgage term.
“When you have a 30- or 35-year mortgage term, it doesn’t necessarily mean you have to stick to that. Some of them will go on a two- or five-year fixed rate, and when they come to renew their mortgage, it’s an opportunity to review their situation,” he added.
Yerou said: “One may say, what’s the plan in 30 years? Thing is, although mortgage brokers have financial acumen, we’re not IFAs, so if someone is renting and has the opportunity to get onto the property ladder, then you have to come up with something.”
A short-term solution
While a longer mortgage term raises questions as to how people will continue to afford mortgage payments, brokers said borrowers did not always see this as a permanent scenario.
On one hand, some borrowers have considered that they may continue working, with Faye Richards, director of Faye Richards Private Finance, saying clients appeared to be “fairly relaxed around retirement age, with many expecting to work beyond this”.
Others had a more immediate vision, she said, as they saw this as a “short-term measure” that allowed them to settle into a property or adjust to higher payments after refinancing.
“Most clients do not expect to keep the term until it expires but, instead, through potential pay rises and bonuses, overpay on the mortgage to ensure it is paid off quicker. If they are purchasing a larger family home, then the expectation is that they are likely to downsize in the future,” she added.
Richards said clients were also happy to see how much payments would be on a shorter term and the impact of making overpayments, saying people were “generally motivated to pay the mortgage off as quickly as possible”.
Wells added: “Most people don’t intend to be in their first homes for more than five years, and therefore they see this a stopgap until they do buy their forever home, at which point they expect their income to be higher and they can start making inroads into repaying the mortgage.”
For older clients, Wells found those who wanted to borrow up until they were 75 or 80 said “when they do retire, or receive inheritance from their parents, they will sell the property and buy a retirement property outright”.
He added: “There is also a thought that by the time they reach their state pension age of 68, they may only have £50,000 remaining on their mortgage, and therefore they don’t mind spending £250 per month of their pension on any remaining mortgage.
“We have to make the clients aware that this is a long-term investment, though, and they are liable for the entire debt over the entire term.”
Wells said it might not be a problem today, but unexpected life events could leave people unable to sell their home, or they may find their pension “isn’t what they expected, and they may be left unable to repay their mortgage”.
Lloyd Wells makes borrowers aware of this risk in its suitability letters.
A lack of forethought?
Shaw said this trend raised “worrying questions” as his clients assumed “wages will rise, interest rates will fall and many point to the prospect of inheritance to help clear a mortgage balance in the future”.
He asked: “What happens if wages don’t increase? What if mortgage rates don’t fall by the expected amount, and what if house prices stay where they are? Moreover, what if their outgoings increase?”
Shaw said some people, particularly first-time buyers, did not consider that their living expenses would rise and their incomes would fall once they became parents.
“As a species, we’re exceptionally bad at planning for the future. We have all sorts of cognitive biases working against us, and we often assume things will be better than they are. While the plan may be to reduce the term over time with the thoughts of that promotion or because rates fall and, therefore, the mortgage payment will go further, it often doesn’t come to fruition,” he added.
He said inheritances were “the elephant in the room” as many did not plan properly for retirement, and the lack of defined benefit pension schemes was one of the main reasons for “an explosion in equity release and lifetime mortgage advice”.
Shaw said: “Retirement savings aren’t what they once were. Therefore, more homeowners are turning to their property as an asset to supplement their income. That was before the cost-of-living crisis made everything worse.
“With that trend set to continue, many borrowers may find that the inheritance cupboard is bare when it comes time. Furthermore, as people take out ever larger and longer mortgages, it takes away from their own ability to save for retirement.
“I fear when these chickens come home to roost in a generation’s time, we could be in for one hell of a rude awakening.”
Furness BS launches lower-rate mortgages with Own New
Own New was established in 2022 by founder Eliot Darcy. The firm partners with lenders to enable high-loan to value (LTV) lending against new-build properties using funding from housebuilders.
The scheme was officially launched in February and more than 250 housebuilders are expected to sign up.
Through the Own New partnership, Furness Building Society has released three two-year fixed rates. This includes a deal up to 80 per cent LTV with a 2.11 per cent rate and a £995 fee.
There is an option up to 90 per cent LTV, also with a £995 fee, priced at 2.66 per cent.
Up to 95 per cent LTV and with no fee, there is a deal with a rate of 3.56 per cent
The mortgages can be arranged through brokers only and are available to first-time buyers and homemovers.
Alasdair McDonald (pictured), head of intermediaries at Furness Building Society, said: “As one of the first lenders in the UK to participate in the Own New Rate Reducer scheme, we are pleased to be helping brokers empower their customers to take their first step onto, or next step up, the property ladder sooner than they had anticipated.
“By offering Own New Rate Reducer mortgages at Furness, we are equipping our intermediary partners with the means to unlock the dream of a new home for many more buyers.”
Darcy said: “It is great to welcome Furness Building Society on board with the Own New Rate Reducer scheme. The principle behind the initiative is a very simple one – to introduce a regular mortgage with lower rates to help more people either buy their first home or make the move they need to a different property.
“We’re particularly pleased that Furness is the first lender to offer Own New Rate Reducer with a 95 per cent mortgage, which will make it this innovative scheme accessible for buyers with lower deposits.”
Fintel’s intermediary division posts rise in profit for 2023
Its gross profit margin also improved from 40.4 per cent to 48.9 per cent.
The revenue generated by this division, which includes Simplybiz, fell slightly by 4.9 per cent to £22.4m. Fintel said that, excluding the impact of contractual term changes relating to software reseller agreements and acquisitions, the intermediary business saw its revenue rise by 5.4 per cent on a like-for-like basis to £18.3m.
Fintel acquired training and competence provider Competent Adviser and financial services review website Vouchedfor last year, which contributed combined revenues of £800,000 and £300,000 in gross profit to its intermediary services business.
The average revenue per customer came to £8,109, which was 2.7 per cent more than the year before. The division’s income from membership fees rose 3.2 per cent to £11.8m.
Fintel’s core organic revenue from mortgage commissions dropped from £5m in 2022 to £4m in 2023.
Acquisition strategy
Fintel said it would capitalise on “favourable market conditions” this year to carry out its “inorganic growth strategy”. The group plans to expand its market position and increase market penetration with further mergers and acquisitions (M&A), it said.
Last year, it made four acquisitions with an initial net cash investment of £13.3m and invested £4.8m in its technology and services platform.
A ‘defining year’ for Fintel
Fintel’s distribution channels division posted a drop in gross profit from £9.2m in 2022 to £7.6m last year. It said that, excluding mortgage market volatility, income generated by this division was consistent.
Its core commission revenues fell by 16.4 per cent to £6.8m.
Its fintech and research division, which includes the Defacto subsidiary, saw its gross profit rise from £12.5m to £14.2m year-on-year (YOY).
In 2023, it acquired portfolio ratings and reviews platform AKG and investment research platform MICAP.
The group’s core revenue rose by 0.3 per cent to £56.6m in 2023, and Fintel closed the year with a profit before tax of £9.6m, down from the previous year’s £12.4m.
Fintel said it was trading in line with expectations, and growth in its fintech software revenue as well as software licence sales offset the challenges in the UK housing market.
It said that, with an improved outlook for the housing market, the business was positioned to benefit from a recovery in the mortgage sector.
Matt Timmins, joint CEO of Fintel, said: “2023 has been a defining year for Fintel. We have delivered a resilient financial performance and significant progress against our strategy, which balances growth across our core activities, organic investment and complementary mergers and acquisitions.
“We are executing our strategy at pace, enhancing our service and technology platform, increasing our scale and reach, and strengthening our position at the heart of the UK retail financial services sector to inspire better outcomes for all.”
He added: “The cash-generative nature of our business, underpinned by our financial resources, positions us well to capitalise on the favourable market conditions for mergers and acquisitions while delivering further organic growth and value to all of our stakeholders.
“In the new financial year to date, we are trading in line with expectations and remain well-positioned to take advantage of opportunities in our market.”
Legal and General Retail reshuffles executive team
The retail division at Legal and General covers its pensions, retirement, mortgages and protection business.
Craig Brown, currently chief executive of home finance, has been made chief operating officer (COO) of the retail division.
Brown joined Legal and General in 2012 and has held several roles including director, intermediary and key account director. He will be responsible for operations across retail protection, annuities, workplace savings and home finance.
Lorna Shah, managing director for retail retirement, will now also lead the home finance department alongside her existing duty of leading the annuities business.
She has worked for the company for 20 years, and was previously CFO of Legal and General Retail Retirement. She was also a member of the home finance board.
Shah will see the home finance division through its plan to transition later life mortgages into mainstream retirement planning, as well as encourage integration between the annuities and home finance businesses.
Paula Llewellyn, retail chief marketing officer and direct managing director, will take on the additional responsibility of driving the strategy of the retail division.
Bernie Hickman, chief executive of Legal and General Retail, said: “As a leading provider of savings, protection, and retirement products, we remain focused on helping our customers manage their assets and income to achieve their life goals, whether that is helping to protect their income when life gets tough, grow their savings to enjoy retirement or accessing housing equity to supplement retirement savings. Joining up our businesses to create a single customer service and engagement platform is a key part of our customer-centric vision for the retail division.
“The changes I have announced today set us up to accelerate the growth of our business and deliver the best outcomes for our retail customers, helping them navigate through challenging economic times and providing them with peace of mind that they are being looked after by a trusted brand.”
Gove warns Mayor Khan that housebuilding plan is ‘letting down’ Londoners
Gove wrote to Khan with concerns that the London Plan was restricting housebuilding and asked him to review the plan, which lays out how homes in the capital will be delivered.
The housebuilding plan review is expected to focus on the use of industrial land in London and potential areas of opportunity.
Gove said 736 hectares of land could be turned into housing developments in London, but were held up by planning that developers described as “too restrictive”.
He also said there were 47 areas in London that could deliver at least 2,500 homes, 5,000 jobs, or a combination of both, but no progress had been made.
Khan has been asked to make sure these areas are targeted and consider any policies that could be holding development back. The mayor has also been asked if it would be necessary to introduce a single planning framework to speed up the delivery of housing.
‘Let down’ Londoners
Gove said: “Londoners are being let down by the mayor’s chronic under-delivery of new homes in the capital. We have already taken comprehensive action to reverse this trend – investing billions of pounds to build affordable homes and unlocking brownfield developments as part of our Long-Term Plan for Housing.
“However, that alone will not build the homes we need, which is why I am now directing the mayor to review aspects of the London Plan and announcing specialist support on planning to help unlock thousands of homes.
“I look forward to continuing to work with the Greater London Authority, councils and the sector so we can get spades in the ground and deliver the homes the capital needs.”
Greg Hands, minister for London, added: “It is unacceptable that Londoners don’t have access to the homes they need due to persistent under-delivery of homebuilding, which is why we’re directing the mayor to review London Plan policies.
“This action comes on top of millions of pounds in government investment to regenerate estates, unlock major brownfield sites, and build thousands of new homes. But government cannot act in isolation – we need the Greater London Authority to step up and work with us, so we can provide affordable housing for all.”
The government has brought in a “super-squad” of planners to speed up planning decisions in London, and they will prioritise cases where developments have been held up in the planning system.
They will focus on Newham and Greenwich first, with a fund of £500,000 to help with planning applications, which is set to unlock more than 7,000 homes.
The government said the rate of the delivery of homes in London needed to rise from an average of 37,200 per year to 62,300 to meet the London Plan’s targets.
Bank of England expected to hold base rate this week
At its last meeting on 1 February, the MPC had a three-way split: six members voted to hold the base rate at 5.25 per cent, two voted for a rise and one for a cut. A split vote indicates that rates may be held in March as well.
Steve Matthews, investment director at Canada Life Asset Management, said: “With the Bank of England expected to hold interest rates later this week, all eyes will be on the committee’s remaining two hawks – Jonathan Haskel and Catherine Mann – who voted for a rate hike in February.
“If both Haskel and Mann shift to hold, it could signal that a June cut is potentially on the cards. However, they retain ongoing concerns, repeated by Mann last week, over the tight labour market and UK wage growth settlements still outpacing inflation, despite it slowing again in the three months to January. The surprising inflation data from the US last week will also be front of mind.
“In turn, the market will also be looking to see if more committee members decide to join Swati Dhingra, who was the first to call for an immediate cut last month. Unless we see something seismic in Wednesday’s inflation data, we still expect Dhingra to remain an outlier, with the majority of the committee wanting to see the data get very close to and stabilise around two per cent before they join the ‘cut’ party.”
The UK inflation rate has fallen significantly from the record inflation rate recorded in October 2022, when it hit a 12-year high of 11.1 per cent.
In the 12 months up to January, the Consumer Price Index (CPI) measure of inflation was four per cent; on a monthly basis, the CPI fell by 0.6 per cent in January 2024, the same rate as a year ago.
Experts generally expect February’s figure to be lower than in January. Capital Economics has predicted that the inflation rate could fall to about 3.3 per cent, while S&P Global Market Intelligence forecasts a rate of about 3.6 per cent.
In its Monetary Policy Report in February, the BoE said inflation would hit its two per cent target in April, but then could rise again.
Andrew Bailey, the bank’s governor, said there had been “good news” on inflation in recent months, but that the committee needed to see more evidence that inflation will fall “all the way to the two per cent target, and stay there” before it can reduce interest rates.
Kent Reliance launches resi range and cuts BTL rates
Within the residential range from Kent Reliance, its income flexibility range for customers who need flexibility around income multipliers is available up to 95 per cent loan to value (LTV) up to £1.5m.
Its extra flexibility range, for borrowers who need flexibility due to the credit profile, is available up to 85 per cent LTV.
Core residential fixed rates at 85 and 90 per cent LTV have fallen.
In the shared ownership range from Kent Reliance, all product fees have been removed and rates on 95 and 100 per cent mortgage share value (MSV).
In its BTL range, 80 per cent LTV fixed rates have dropped by 0.5 per cent.
Full range rates from 4.59 per cent are suitable for any property type, including houses of multiple occupancy (HMOs) with up to 20 lettable rooms.
Adrian Moloney (pictured), group intermediary director at OSB Group, said: “With the current economic backdrop, we were keen to provide some positive product options for brokers, as we understand the challenges they are facing across the board.
“At the end of the day, there are always clients wanting to transact, whether it’s for the next step towards a family home or an investment property, so it’s important as a lender that we listen and adapt accordingly. For example, our income flexibility products were designed to help newly qualified professionals looking to purchase their first home but needing flexibility around income multipliers.”
Wayne Gray, managing director of DMI Finance, said: “KRFI are a key lending partner and these products and reduced rates will certainly be welcome news, especially for our residential clients who need just a little more flexibility in order to secure their dream property.
“Alongside this positive news, we really value the support of KRFI’s award-winning BDM team, as they take the time to talk through case complexities, which can make a real difference towards securing a positive outcome.”
Property developer slapped with bankruptcy restriction of 12 years
Glenn Armstrong was given a bankruptcy restrictions order (BRO) for 12 years at the High Court last week, following an investigation by the Insolvency Service.
This will mean that he is unable to borrow over £500 without informing the lender that he is subject to extended restrictions or cannot act as a company director without the court’s permission for 12 years under the order.
Bankruptcy proceedings began against Armstrong in 2018 following a creditor petition.
The proceedings found that Armstrong had offered false and misleading information to four individuals to allow him to secure £273,000.
Armstrong signed an undertaking with the Financial Conduct Authority (FCA) in December 2018, where he said he would not enter into any further loan agreements directly or through his companies.
He was declared bankrupt in February 2021, and the 64-year-old had been subject to an 18-month interim BRO secured in August 2022.
Joe Sullivan, official receiver at the Insolvency Service, said: “Glenn Armstrong’s conduct in misleading investors was unacceptable and we are pleased to have secured stringent bankruptcy restrictions against him.
“The 12-year bankruptcy restrictions order, which follows on from an interim 18-month BRO, reflects the seriousness of the case and misconduct identified by the Insolvency Service.
“We will not hesitate to take robust action when financial wrongdoing is uncovered.”
The Cambridge adds JBSP deal; MPowered Mortgages cuts rates – round-up
The JBSP product will allow up to two occupiers to use the additional income of up to two close family members.
The JBSP deal accepts up to four applicants in total, and the combined income will allow customers to borrow more.
Supporting family members will be named on the mortgage and will be jointly responsible for monthly mortgage payments being met.
Family members will not be on the title of the property, and the occupiers have legal ownership of the purchased property.
Kathy Bowes, intermediary manager at The Cambridge – which opened up to foreign nationals in January – said: “We appreciate that getting a foot on the property ladder is not without its challenges, and that many borrowers rely on family members to support them purchasing their own home.
“We’re a building society built on a foundation of finding new ways to help people have a home. In addition to our shared ownership products and 95 per cent lending, we hope that this JBSP initiative will help brokers find additional solutions for borrowers trying to buy a home.”
MPowered Mortgages lowers rates across all fixed rates
Prime residential mortgage lender MPowered Mortgages has lowered rates across its entire fixed rate mortgage range.
Two-year purchase rates at 60 per cent loan to value (LTV) with a £999 arrangement fee have fallen from 4.9 per cent to 4.52 per cent.
Two-year remortgage rates at 60 per cent LTV with £999 arrangement fees have decreased from 5.19 per cent to 4.57 per cent.
Fee-free two-year purchase rates have gone down from 5.14 per cent to 4.69 per cent, and for remortgage, the rate has decreased from 5.34 per cent to 4.84 per cent.
The lender has cut three-year fixed rates, with purchase rates beginning from 4.42 per cent with a £1,999 arrangements fee, and remortgage rates starting from 4.49 per cent with a £999 fee. This is down from 4.47 percent, 4.57 per cent and 4.77 per cent respectively.
Products without an arrangement fee are at 4.67 per cent for purchases, formerly 4.77 per cent.
For five-year fixed rate deals, purchase rates with a £1,999 fee start at 4.42 per cent, and remortgage deals are priced from 4.44 per cent with a £999 fee. Fee-free purchase rates begin from 4.44 per cent and 4.64 per cent for remortgages.
Remortgage cashback deals come with a choice of either £500 cashback or a legal assist feature, which goes towards legal fees.
Matt Surridge, sales director at MPowered Mortgages, said: “We are delighted to be able to reduce our fixed rate mortgage range at a time when most other lenders are raising mortgage interest rates.
“The decision reflects our optimistic outlook for the housing market over the next few months and our determination to support homeowners at this challenging time to purchase a home or remortgage.
“As always, borrowers looking to take advantage of these new rates should seek independent professional advice to ensure a comprehensive understanding of the products on offer and how they match up to their requirements.”