The rate is available on a 2-year variable discounted mortgage with a loan-to-value (LTV) of 60%, representing 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.
The 2-year fixed rate mortgages, aimed at first-time buyers and house buyers, include a 0.53% reduction in the rate for 85% LTV mortgages, taking the rate to 1.78%.
The same LTV for the 2-year discounted mortgages 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 a lot longer than my 15 years with the company and we can’t remember rates as low as this.
“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.
“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.”
