Cumberland Building Society has announced significant cuts to its fixed-rate mortgage interest rates, offering a glimmer of hope for those wrestling with the prospect of rising monthly payments. With reductions of up to 0.5%, the society introduces new rates that promise more affordable borrowing costs, going as low as 4.26% for 2-year terms and 3.93% for 5-year terms.
A Helping Hand for Homeowners
This initiative comes at a critical time for many homeowners whose mortgage deals, secured before the Bank of England’s rate hikes in December 2021, are nearing their end. The abrupt increase in rates has left some facing the daunting reality of their monthly payments surging by hundreds, if not more than £1,000, a stark change that could strain any household’s budget.
Jack Green, the mortgage hub manager at Cumberland, shared insights into the challenges facing remortgage customers, stating, “We’ve come across remortgage customers whose payments have increased by hundreds of pounds or in some cases more than £1,000 a month. We want to support our customers to keep their monthly payments as low as possible. Our new fixed-rate products could help them achieve this.”
Flexible and Supportive Mortgage Options
Cumberland’s revised mortgage offerings are not only competitive but also flexible, catering to a wide range of needs. Available for both home purchases and remortgages, these options include up to 60% loan-to-value (LTV) rates, with the possibility for borrowers to secure loans up to 90% LTV for remortgages and an impressive 95% LTV for home purchases. This flexibility is particularly beneficial for those with smaller equity stakes, although it’s noted that rates might be slightly higher for these higher LTV loans.
Additional Benefits for Loyal Customers
Cumberland is also waiving the standard £999 arrangement fee for existing customers who are approaching the end of their current mortgage deals. Moreover, the society is offering free valuations and covering standard legal fees for new remortgage clients on properties valued up to £750,000.