The high street bank says its changes, which come to market tomorrow (22 September), cover: 

• Two-year fixed-rate house purchase deals at 75% to 95% loan to value, reduced by up to 25bps 
• Three-year fixed-rate house purchase and remortgage offers, reduced by up to 20bps 
• Five-year fixed-rate house purchase loans, reduced by up to 20bps 

At noon today, the BoE’s Monetary Policy Committee released its surprise decision to hold the base rate at 5.25%, in a narrow 5-to-4 vote, following the last rise on 3 August.   

Many economists expected a further 0.25% hike before the committee would consider how it previous 14 consecutive rate rises were feeding through the economy, as it battles inflation.   

The cost of living unexpectedly slowed to 6.7% in the 12 months to August yesterday – down slightly from 6.8% in July. 

Earlier in the day, MPowered Mortgages said its prime residential two-year fixed-rate loans had come down by up to 12bps. 

Its two-year fixed product without an arrangement fee, now starts at 6.07%, for both purchases and remortgages.   

Rates on its three-year fixed products have also been reduced by as much as 10bps.  

For purchasers paying an arrangement fee of £2,495, rates begin at 5.54% for purchasers and 5.49% for remortgages. For purchasers and remortgagers who do not pay an arrangement fee, rates start from 5.89% and 5.94%, respectively.    

The firm has also cut all of its rates on its five-year fixed range, with rates for purchasers beginning at 5.24%, and rates for remortgagers beginning at 5.29% – both with a £1,999 arrangement fee.  

On five-year fixes without an arrangement fee, rates start at 5.44% for purchases and 5.49 for remortgages.     

MPowered Mortgages chief executive Stuart Cheetham says: “Given the swap markets are beginning to stabilise for now and with inflation decreasing to 6.7% in August, we are optimistic that a more stable economic landscape will help drive activity in the mortgage market throughout the remainder of the year.”