MPowered Mortgages has announced reductions to its three-year fixed rates despite a background of rising swap rates.
Swap rates, which mortgage lenders use as to determine fixed rate pricing for mortgages, have been rising steadily over the last two weeks in reaction to trade agreements, better than expected GDP numbers and, more recently, higher than expected CPI numbers.
For new purchase customers, a three-year fixed rate at 65% LTV has been cut to 3.93% with a £999 fee. At 80% LTV, a three-year fix is now available at 4.25% with a £999 fee.
Three-year fixed rates for remortgage customers have also been cut across most LTV bands.
Peter Stimson (pictured), director of mortgages at MPowered, commented: "Our three-year fixed rates offer exceptional value in the market at present. Whilst many other lenders have been increasing rates in response to rising swaps and have been effectively playing ‘catch up’, we have chosen to price our products closer to the swap curve which has allowed us to make further cuts to our mortgage fixed rate range.
"We feel three-year products offer a good choice for many customers, not only in terms of offering some great rates, but also in terms of offering customers a real alternative for those caught between the uncertainty of choosing a two or five year product.
"Swaps are still volatile and there is no guarantee how long current deals will be around, so you may need to act fast if you want to secure a deal at today's rates."
