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Mortgage Lender closes as the Plug is Pulled on MPowered

ended 27. October 2025

MPowered Mortgages has confirmed that Tuesday, 28th October) MPowered will no longer provide any new mortgage lending. Existing pipeline cases will continue as normal.

This change of direction by MPowered may inadvertently create many Mortgage Prisoners, given that the lender has suggested that no further Product Transfer options may be available after this cut-off date.

This does pose many questions for both brokers and borrowers - when choosing the right lender for any borrowing needs, do we consider the size and scope of the lender, large or small? Do we need to think about what is available once the initial deal finishes? Is there safety in numbers? Would this be something an AI-based advice model would actually consider? 

The closing of the lender doesn't seem to be for any bad debt or lending issues, but with a few small adverse lender closures in America, will we see another round of consolidation between lenders in the UK or overseas?

Your thoughts and comments are welcome.

 

3 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
Seeing any lender move from the market narrows the choices for potential borrowers, but we haven't seen a huge amount from MPowered recently, so it shouldn't make any significant problems. Existing borrowers should get in touch with their broker and make sure they are in a position to refinance elsewhere when required, as it doesn't look like any other lender has taken on their mortgage book just yet. One of the many subtle aspects of mortgage brokering is the potential position of borrowers once the initial deal expires. A 'larger' lender does offer some stability as well as a more recognisable brand.
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Michelle Lawson
Director at Lawson Financial
There have been quite a few recent buy outs and amalgamations, which will inevitably mean more streamlining and cost savings to come. These decisions are not made lightly but there could be some borrowers left high and dry with this decision from MPowered to not even offer product switches or to transfer the business to another lender. These are considerations that we can take as advisors but often after the advice and later down the line as we aren't privy to such negotiations until the deal is sealed.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
A lot of people don’t realise this can happen. If your lender shuts up shop and doesn’t offer product transfers, you could be stuck on a higher rate with nowhere to go. We call this becoming a ‘mortgage prisoner’. It’s why it’s worth thinking beyond just the headline rate. A big, established lender might not always be the cheapest, but they’re usually more stable and less likely to leave you stranded down the line.