Mortgage borrowers with a 40 per cent deposit will be able to secure a five-year fixed rate at 4.94 per cent instead of 5.41 per cent. The deal comes with an arrangement fee of £999.
The equivalent fee-free option will be 5.02 per cent also following a 0.47 per cent rate reduction.
For borrowers looking for a short-term fixed rate, Halifax is cutting rates on its two-year fixes by up to 0.33 per cent bringing most in most of its two-year deals in at less than six per cent.
At 85 per cent loan to value (LTV), the bank’s two-year fee free fixed rate has been cut from 6.17 per cent to 5.85 per cent. Borrowers with a 10 per cent deposit can pay £999 to lock into a two-year deal of 5.83 per cent instead of 6.17 per cent.
The rate cuts will apply from tomorrow.
MPowered Mortgages
MPowered Mortgages has cut two, three, five, seven and 10-year fixed rates on its residential range by up to 0.35 per cent.
Five-year fixed rates for remortgage borrowers now start from 4.89 per cent while five-year fixed deals for purchase applications have been reduced by up to 0.30 per cent and now start from 4.94 per cent.
Rates on 10-year fixed products have been reduced by up to 0.14 per cent and now start at 4.99 per cent.
Meanwhile, rates on its two-year fixed products have been cut by up to 0.44 per cent and start from 5.19 per cent.
Stuart Cheetham, chief executive of MPowered Mortgages, said: “As a smaller fintech lender we will continue to try and keep rates as low as we possibly can.
“This is crucial if we want to help people both on the housing ladder or trying to get on it, especially at a time when the cost-of-living continues to squeeze finances. However, whilst keeping rates low is important, seeking independent financial advice is too, as it will help borrowers choose a mortgage that best meets their individual needs.”
