The Cumberland offers its lowest ever mortgage rate
The Cumberland has announced its lowest ever mortgage rates, offering the chance to make significant savings.
The building society has announced reductions for variable rates and discounted mortgages that will see it offer a rate of 0.83%. And it is predicting that the housing market in the region will continue to be buoyant into the autumn.
The 0.83% rate is available on a two-year variable discounted mortgage with a LTV of 60% - a rate reduction of 0.25%.
The Cumberland also has a 0.88% rate available for a two-year fixed mortgage with the same LTV.
Reductions across the board
Aside from those two attention-grabbing rates, there are reductions across the board for higher value mortgages.
The two-year fixed rate mortgages include a 0.53% reduction in the rate for 85% LTV mortgages, taking the rate to 1.78%.
The same LTV for the two-year discounted mortgages now has a rate of 1.73% after a reduction of 0.75%.
Lewis Benson, area manager at The Cumberland, believes the rates are the lowest the building society has ever offered.
“We change our rates all the time because as a mutual organisation we are always trying to get the best deal for our members.
“And I can’t emphasise enough how brilliant these rates are. This is a really good time for anybody who has a mortgage to spend some time with a mortgage adviser and see if you can get a better deal,” he said.
Good houses are being snapped up
With the housing market still riding high and many houses being snapped up quickly home buyers are being urged to get mortgage deals in place so they can pounce on properties when they become available.
Mr Benson said: “If you can speak to a mortgage adviser early you can be really confident that when you find that dream home you can complete the purchase.
“Estate agents want to know if you are able to purchase a property so if you have a mortgage in principle or affordability certificate and are ready to go you have more chance of having your offer accepted.
“I think normally we would expect the housing market to slow down as we move from autumn into winter, but I am not sure that will happen this year.
“There is still pent-up demand because there is less housing stock in the market. So, as houses continue to come on to the market people respond quickly and I think we will have a very good six months,” he added.
A busy autumn ahead
Industry data shows there will be a significant spike in the number of mortgages due for renewal in October with many people in the region coming to the end of attractive five-year fixed deals.
The Cumberland says there are £545m worth of remortgages due next month in its operating area - twice the usual level.