MPowered Mortgages has cut its full range of fixed mortgage rates in response to falling swap rates.

The lender’s fixed rates for new purchase customers include a two-year fix which starts at 3.99% at 60% loan-to-value (LTV) with a fee of £999 and at 4.24% with no fee.

In addition, three-year fixed rates will now start at 3.92% at 60% LTV with a fee of £999 and 4.13% with no fee.

Five-year fixed rates have also been cut to now start at 4.09% at 60% LTV with a £999 fee and 4.23% with no fee.

MPowered Mortgages chief executive officer Stuart Cheetham says: “Swap rates, which mortgage lenders base their mortgage rate pricing on, 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 30bps since Donald Trump’s announcement and two-year swap rates are now at the lowest level we have seen for over 12 months.”

“Whilst three base rate cuts for 2025 have now been priced into the swap curve, the macro-economic backdrop remains uncertain. The potential of cheaper imports from Asia, and a weakening of the US dollar could mean inflation falls faster than forecast which would allow 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 3.0% 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.”