Residential lender MPowered Mortgages has reduced rates on its three-year fixed-rate products by up to five basis points.

The lender, which mainly operates in the prime sector, is now offering three-year fixes starting at 5.24% for purchasers at 75% LTV, borrowing more than £200,000. This deal comes with a £1,999 arrangement fee and a £500 cashback offer. The rate rises to 5.34% with a £999 arrangement fee (again at 75% LTV, and with £500 cashback).

MPowered Mortgages has also cut rates for those borrowing less than £200,000. Purchasers can secure a rate of 5.34% with a £999 fee, or 5.64% on a fee-free option. Both of these are again at 75% LTV. For those on higher LTVs, MPowered is offering a rate of 5.73% at 90% LTV (with £999 fee).

For those remortgaging, rates start at 5.25%. Again, this is for loans of more than £200,000 at 75% LTV, and with a £1,999 arrangement fee. Remortgage deals over £200,000 comes with a £1,000 cashback incentive.

For those borrowing less than £200,000 MPower is offering three-year deals from 5.35%, with a £999 arrangement fee (again at 75% LTV). On its fee-free option the rate starts 5.59% for customers with 65% LTV and 6.04% for those on a 90% LTV. 

All remortgage deals under £200,000 come with £500 cash back. 

MPowered Mortgages sales directors Matt Surridge says these rate reductions should support those looking to remortgage or purchase a property in what remained challenging market conditions.