MPowered Mortgages has reduced the rates on all of its two- and three-year fixed rate mortgages by up to 0.28% for new purchase and remortgage customers.

The lender’s two-year fixed rates for new purchase customers start at 4.21% for 60% loan-to-value (LTV) with a £999 fee, while three-year fixed rates start at 4.19% at 60% LTV with a £999 fee.

All rates across the two-year range have been reduced by at least 0.14%, with most being cut by 0.20%.

Last week, MPowered cut its standard variable rate (SVR) by 0.75% to 6.74% (BBR +1.99%) following the Bank of England’s interest rate cut from 5% to 4.75%.

MPowered Mortgages chief executive officer Stuart Cheetham says: “The market has been very volatile of late, so we are pleased to be one of the few lenders who is reducing rates at a time when many others seem to be raising rates.”

“Whilst we are reducing our rates, we would urge borrowers to remain cautious and seek independent advice before choosing a mortgage. There are still a number of headwinds out there which can impact the cost of a mortgage over the months ahead and the direction of mortgage rates remains uncertain.”