Mortgage Rates Are Coming Down – What Does That Mean for You?

Mortgage Rates Are Coming Down – What Does That Mean for You?

After months of uncertainty, we’re finally seeing a positive shift in the mortgage market — interest rates are on the way down, and lenders are starting to compete for your attention.

Whether you’re planning to buy, remortgage, or just checking your options, now’s the perfect time to find out what deals are available based on your real circumstances — not generic numbers.

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MPowered Mortgages Leads the Charge with Rate Cuts

One lender that has already responded to the fall in Sonia swaps is MPowered Mortgages, which has announced rate cuts across its full range of fixed-rate mortgages. Starting tomorrow, MPowered Mortgages will offer lower rates on both two-year and five-year fixed options, with some starting as low as 4.05% for a two-year fix and 4.14% for a five-year fix.
These new rates will be available to borrowers with at least a 40% deposit. The lower rates come with a £999 fee, and the lender hopes that the price cuts will make mortgage products more accessible to homebuyers and remortgagers alike. Stuart Cheetham, CEO of MPowered Mortgages, acknowledged that while the tariff-related changes could have negative consequences for the UK economy, there is a silver lining for mortgage borrowers, who will see lower rates in the short term.

“We’ve seen a sharp fall in the swap rates since Trump’s announcement, which has allowed us to reduce our fixed-rate mortgages,” said Cheetham. “While the tariffs could put pressure on household budgets, this drop in mortgage rates provides much-needed relief for borrowers.”

More Lenders Expected to Follow Suit

As MPowered Mortgages leads the way with lower rates, experts predict that more lenders will soon follow suit. Pete Mugleston, Managing Director at Online Mortgage Advisor, told Newspage that with Sonia swaps continuing to decline, it wouldn’t be surprising to see two and three-year fixed rates dip below 4% in the coming weeks. “If the current trends hold, we could soon see lenders offer rates under the 4% mark,” Mugleston said.

However, many lenders are likely waiting for a period of swap rate stability before making their moves. As the market adjusts, mortgage brokers expect the competition to heat up, with rate cuts becoming more widespread in the coming weeks.

Mortgage Market Poised for a Shift

The current trend is a hopeful sign for homeowners, particularly those looking to remortgage or enter the housing market. With house prices reportedly dipping according to Halifax, a drop in mortgage rates could provide the much-needed boost for a market that has been hesitant in recent months. Riz Malik, Independent Financial Adviser at R3 Wealth, echoed this sentiment: “We could see some really significant cuts in fixed-rate mortgage pricing this week, and that could inject some much-needed momentum into a market that’s been uncertain.”

Looking for a Mortgage as a Contractor?

At Contractor Mortgage Solutions, we specialize in helping contractors and self-employed professionals secure the best mortgage deals based on their unique income structures. Whether the rules change or not, we work with lenders who understand contracting income and can maximize your borrowing potential.

Get in touch today to discuss your options with a specialist mortgage advisor.