For purchasers looking for a three-year fixed loan, rates at MPowered Mortgages have been cut from 4.67% to 4.59% at 60% loan to value (LTV) with a £999 arrangement fee.
A fee-free option is available at 4.79% for 60% LTV and 4.89% at 75% LTV. Rates were previously 4.87% and 4.99% respectively.
For remortgaging borrowers, three-year fixed rates now start at 4.49%, down from 4.59% at 60% LTV, with a £999 arrangement fee.
For those not wanting to pay an arrangement fee, rates start from 4.69% down from 4.89% on a 60% LTV, rising to 6.09% and down from 6.19% for those on an 85% LTV.
Rate cuts have also been made to two-year fixed deals for purchases and remortgages.
Matt Surridge, sales director at MPowered Mortgages, said: “Mortgage rates have been increasing in recent weeks, but we think we have hopefully now seen the end of this.
“Rising rates have primarily been in response to predictions around the timing and extent of Bank of England rate cuts, and given that inflation has proven to be rather stubborn, the date of the first expected cut has been pushed out to the summer months. Whilst we can expect some level of volatility in mortgage rates in the coming weeks, there are positive signs that rates will start coming down in the not-too-distant future.”
Atom to withdraw Recovery Loan Scheme deals
Atom Bank is reducing the interest rates charged on its range of commercial mortgages by up to 0.61%.
The changes will see variable rates start at 2.04% over base rate, while fixed rates start at 6.25% for loans with a maximum LTV of 45%.
Atom Bank’s range of commercial products include Business Banking Secured Loans and Recovery Loan Scheme (RLS) products. Atom Bank will be closing for new RLS applications from midnight on Tuesday 28 May.
The rate cuts, which see a noticeable decrease in RLS pricing specifically, are on a temporary basis, so will only apply until this date.
Tom Renwick, head of business lending at Atom Bank, said: “We know how crucial price is for commercial customers at the moment, which is why we are delighted to be able to make further reductions to our commercial mortgage rates. With the RLS coming to an end next month, in particular we want to ensure that businesses are able to take advantage at the best possible rates on this product.”
