9 hours Ago By Katie Elliott
A mortgage lender has slashed interest rates across its fixed products to offer deals starting from 3.92%. MPowered Mortgages says the reductions come in response to swap rates, which have been falling at a “rapid pace” since President Trump’s tariff announcements.
Swap rates are the interest rates lenders pay to financial institutions to secure fixed-rate funds. When swap rates fall, lenders can offer lower fixed mortgage rates to customers. Stuart Cheetham, CEO of MPowered Mortgages, said: “Swap rates have continued to fall in the past couple of weeks, and we are now starting to see some of the best mortgage rates in well over a year as a result.
Swap rates, especially for shorter-term fixed options, have fallen by over 30 basis points since Donald Trump 's Liberation Day announcement, and two-year swap rates are now at the lowest level we have seen for over 12 months.” MPowered's fixed rates for new purchase customers, which became effective on Friday, April 2025, include: Two-year fixed rates now start at 3.99% at 60% Loan To Value (LTV) with a £999 fee and at 4.
24% with no fee. Three-year fixed rates now start at 3.92% at 60% LTV with a £999 fee and 4.
13% with no fee. Five-year fixed rates now start at 4.09% at 60% LTV with a £999 fee and 4.
23% with no fee. Three Bank of England base rate cuts have now been priced into the swap curve for 2025. However, Mr Cheetham said the macroeconomic backdrop remains uncertain.
He said: “The potential of cheaper imports from Asia, and a weakening of the US dollar, could mean inflation falls faster than forecast, allowing the Bank of England to cut the base rate even further and faster. Continued sluggish growth of the UK economy could have further implications for swap rates in the latter half of 2025 and into 2026, and we could see the base rate fall to as low as 3% if the economic situation continues to look bleak. “Whilst this could mean even lower mortgage rates are on the horizon, which would be great news for homebuyers and those looking to remortgage, we could start to see house prices rise substantially given ongoing housing supply constraints.
” MPowered Mortgages joins several other lenders that have cut interest rates this week. Nationwide Building Society slashed rates by up to 0.25% on Tuesday, with the lowest two-year fix starting from 3.
89%. Experts have said lenders are “seriously locking horns” as the mortgage price war heats up. Justin Moy, managing director at EHF Mortgages said: “These new deals from Nationwide look to be market-leading, starting from 3.
89% on a 2-year fixed for those looking to move home and with a good-sized deposit. With lenders starting to put pressure on each other to keep some momentum in the home purchase market, I would expect to see more lenders do the same, pricing differently for home movers, first-time buyers and those remortgaging.” Ben Perks, managing director at Orchard Financial Advisers , added: “It’s heating up and lenders are at each other’s throats as another major player cuts their rates to compete for business.
The rates are starting to become very attractive for borrowers as market conditions continue to improve. Game on.”.
