Mortgage lenders implement rate cuts

Five-year fixes are available from 5.45% for properties with similar energy ratings, with options for HMOs and multi-unit blocks (MUBs) also included in the range. The product refresh also features a £2,995 fee option for larger loans, with the LTV cap increased to 75%.

“An improving economic outlook gives us the opportunity to carry out a positive refresh of our range, taking up to 20bps off 20 products,” said Louisa Sedgwick (pictured centre), recently appointed managing director for mortgages at Paragon Bank. “We’ve also simplified our offering, and borrowers can choose from deals with nil product fees, percentage fees or a flat fee of £2,995.”

Meanwhile, MPowered Mortgages has also reduced its fixed rate mortgages by up to 22bps, marking the third rate cut by the lender in two weeks.

Five-year fixed rates now start at 4.01%, with three- and two-year fixes at 4.19% and 4.41%, respectively, for 60% LTV with a £999 fee. The lender also made a notable reduction to its standard variable rate (SVR), bringing it down from 8.74% to 7.49%.

“Rates are coming down, and it’s great to be passing on this good news to borrowers,” said Stuart Cheetham (pictured right), chief executive of MPowered Mortgages. “We have not just passed on the base rate reduction to borrowers but reduced our SVR by a significant 1.25% since May.”