The Cumberland building society has launched its lowest mortgage deal that will see it offer a rate of 0.83%.

The mutual’s 0.83% rate is available on a two-year variable discounted mortgage with an LTV of 60%, a cut of 0.25%.

It also has a 0.88% rate available for a two-year fixed mortgage with a 60% LTV.

The business has other reductions across its higher value mortgages range.

Its two-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%, for example.

Its 85% LTV for the two-year discounted mortgages now has a rate of 1.73% after a reduction of 0.75%.

The Cumberland area manager Lewis Benson says: “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.”