MPowered Mortgages has cut prices on fixed rates by up to 37 basis points and brought in new LTV bands.

It is the second rate reduction within a week by the lender. 

The new tiers mean that LTVs now go up in 5% increments giving borrowers more pricing options to better reflect their equity position.

Following the changes, five-year fixed rates for purchase with a £999 fee now start from 4.14% at 60% LTV, 4.17% at 65% LTV, 4.19% at 70% LTV and 4.21% at 75% LTV. 

Two-year fixed rates with a £999 fee now start from 4.55% at 60% LTV rising in each 5% LTV band to 4.63% at 75% LTV.

The lender says it has deliberately focussed on spreading out its rate cuts across the LTV tiers rather than aiming for a headline-grabbing discount on its lowest LTV products.

Chief executive Stuart Cheetham says: “Following the base rate cut and events in the US, swaps rates have started to fall quickly and this is likely to mean further reductions in mortgage rates and more relief to homeowners over the coming days ahead as lenders look to re-price their ranges.

“Additional rate cuts will be dependent on inflation and the general economic outlook over the weeks and months ahead, but there is real hope on the horizon for borrowers as the general trend looks to be downwards.”