The Cumberland launched its lowest mortgages on record after announcing cuts that will allow it to offer a rate of 0.83%.
The rate is available on a 2 year variable rate mortgage with a loan to value ratio (LTV) of 60%, which represents a rate reduction of 0.25%.
The Cumberland also has a 0.88% rate available for a 2 year fixed mortgage with the same LTV.
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Mortgage loans at a fixed rate over 2 years, intended for first-time buyers and home buyers, include a rate reduction of 0.53% for LTV mortgage loans of 85%, bringing the rate to 1.78%.
The same LTV for 2-year discounted mortgage loans now has a rate of 1.73% after a reduction of 0.75%.
Lewis Benson, Area Manager at The Cumberland, said: “I have spoken to colleagues who have been around much longer than my 15 years with the company and we don’t remember rates so low.
“We change our rates all the time because as a mutual we are always trying to get the best deal for our members.
“And I can’t stress enough how brilliant these rates are.
“It’s a great time for anyone with a mortgage to spend some time with a mortgage advisor and see if you can get a better deal.
“I think normally we would expect the housing market to slow down as we go from fall to winter, but I’m not sure that will happen this year.
“There is always pent-up demand because there is less housing stock on the market.
“So as the houses keep coming on the market people are reacting quickly and I think we’ll have a really good six months.”