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Anyone looking to buy or remortgage right now can consider some of the market-leading rates offered by a lesser-known lender.
MPowered Mortgages claims to be the fastest mortgage lender on the market because it uses artificial intelligence, or AI, to speed up borrower applications.
However, as well as being the fastest mortgage lender, MPowered is also currently offering some of the lowest rates on the market for anyone looking to fix up for two or three years.
Superfast Mortgages: MPowered Mortgages claims to be the fastest residential mortgage lender using AI to speed up borrowers’ mortgage process
How fast is fast?
Last month, MPowered says it delivered a fully underwritten mortgage offer in 15 minutes, its fastest yet.
The lender, founded in 2021, says it now processes 20 percent of its offers within two hours and 80 percent within 24 hours.
According to mortgage broker Habito, applying for a mortgage usually takes between four and six weeks.
What are MPowered mortgage rates?
MPowered’s cheapest two-year fix for homebuyers with a 40 per cent deposit is now 4.52 per cent, while buyers with a 25 per cent deposit can get a slightly more expensive rate of 4.52 per cent. .57 percent. Both come with a £999 fee and both are best buys.
MPowered only does business through mortgage brokers, so anyone who wants one of the loans will not be able to go to them directly.
Someone moving home and buying a property worth £250,000 would need a deposit of at least £100,000 to be eligible for MPowered Mortgages’ cheapest two- or three-year offers.
If they took out a £150,000 mortgage with a 25-year repayment term, they would pay £835 a month. That compares to £948 a month on the average two-year fixed mortgage rate, according to data from Moneyfacts.
Same day offer? MPowered Mortgages says 20% of its applications will be offered within two hours
Buyers can get even better results if they decide to fix it up for three years. MPowered is offering a rate of 4.42 per cent with a fee of £1,999 on its cheapest three-year solution and 4.47 per cent for those purchasing with a 25 per cent deposit. These are also the best buys.
MPowered Mortgages also offers unbeatable rates to people looking to remortgage.
Someone remortgaging with 40 percent of their home’s equity can do so at a rate of 4.57 percent with a two-year arrangement, or as low as 4.49 percent with a three-year arrangement. Again, these are the lowest rates in the market for those tranches of stocks.
What do the MPowered experts think?
Ravesh Patel, director and senior mortgage consultant at brokerage Reside Mortgages, says: ‘Their eligibility criteria are on par with other lenders, but with super-fast processing speeds.
‘They’re a lender with a really clever modern system, making it more efficient for the broker and faster for the customer, and their fees are decent too.
Expert: Ravesh Patel, Director and Senior Mortgage Consultant at Reside Mortgages
“Its rates are particularly good for those buying with larger deposits or higher levels of equity in their home, although it is not a good option at the moment for anyone with smaller deposits or lower equity levels.”
Patel, however, has one criticism. He says it’s almost always possible to get a larger mortgage from other lenders.
Most lenders allow up to 4.5 times annual income and some even offer mortgages up to five or six times income. But this is one area where Mpowered Mortgages may be failing.
“I personally don’t find it very generous in terms of affordability,” adds Patel. ‘I struggle to earn more than four times my joint income when advising clients.
‘For example, I recently advised a couple with a combined annual income of £70,000, with one child and no debt. The most I could get with Mpowered was £273,000, which is 3.9 times their annual income.
“If they fix this affordability limitation, I think they could get a lot of business.”
Jayne Knight, a broker with Mallory Financial, which is the firm that delivered the 15-minute MPowered mortgage offer to a client, said she almost couldn’t believe how “smooth and fast” the application went for her client.
“Not only was it a stress-free and hassle-free process for us, but the client was absolutely thrilled and truly surprised to have received a concrete offer so quickly,” he says.
“The platform has the potential to truly change our industry for the better, leading to better outcomes and customer service.”
How is MPowered so fast?
MPowered uses its own AI-powered mortgage app platform, Origo, to deliver its quick mortgage deals.
Recent improvements have allowed the lender to completely automate the process, eliminating human underwriters from simple cases.
It says its mortgage application system uses “big data, sophisticated language models and machine learning” to evaluate customer data and documents in real time.
Stuart Cheetham, chief executive of mortgage lender MPowered Mortgages
This reduces back-and-forth between lenders and brokers, allowing for a quick underwriting process.
Other updates to the platform have allowed for the automation of even more elements, such as document verification and credit commitments.
Stuart Cheetham, CEO of MPowered Mortgages, says: “Our aim is to improve the mortgage process for everyone, speeding up the mortgage offer process and providing security to borrowers more quickly.”
‘We hear from lenders telling us that they can see what added value our Origo platform can bring to their businesses.
‘It is proven that the platform can bring great efficiencies to the way lenders across the country generate mortgage offers.
“If used at scale, we believe this platform could genuinely revolutionize the process of getting a mortgage, leading to better service and better customer outcomes.”
Compare actual mortgage costs
Calculate mortgage costs and check which is the actual best deal taking into account rates and fees. You can use one portion to calculate the costs of a single mortgage or both to compare loans.
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