The Cumberland Building Society is a UK mutual founded in 1850 and is the 20th largest building society in the UK based on total assets of £1.5 billion. They are headquartered in Carlisle and have 33 branches mainly based in Cumbria and Dumfriesshire. They offer a range of mortgage products including a cashback loan.
There are several products that are based upon the Cumberland Building Society variable rate whether they be completely at the standard variable rate or a percentage above this for example as a tracker rate. Normally when people take out a mortgage product it's for a number of years and then it reverts back to the SVR. Because interest rates are low and it costs a fee to take out a new mortgage many people have simply let there offer deal lapse onto SVR because the rates are so low.
Not a deal as such but the interest rate is simply the base rate that Cumberland Building Society publish as their standard variable rate which you can't take out directly but it's the rate you end up on once your deal has expired.
This is a variable rate mortgage that is a slighly higher rate for six years but offers a cash back of 4% of the total loan amount on completion. There are early redemption fees if pay off the loan in the first 6 years.
There are two types of tracker mortgages offered by the Cumberland Building Society that track the Bank of England Base Rate for the period of the loan at a set percentage above this interest rate. There are two levels - those with a loan to value under 75% and those between 75% and 85%. Currently there are no deals for a LTV above this percentage. There are early redemption fees if you pay back the mortgage in the deal period (ie: for a 3 year tracker within the first 3 years). Some products are only available in their branches rather than via brokers or online.
A capped rate simply means you pay a variable interest rate but it goes no higher than a certain amount if rates rise. Cumberland Building Society does not usually offer capped rate mortgages but it's worth looking on their site if this is what you are after.
There are two Cumberland Building Society fixed rate products for 3 and 5 year fixed rates. These allow you to fixed the rate of interest for a period of time so if the BOE base rate increases then your rate will remain at the level you have chosen for the fixed rate period. Once this rate finishes you will be placed onto the standard variable rate for the rest of the loan term unless you remortgage. The fixed rate deals are only available for remortgages at the current time.
There is also an offset mortgage product where you can pool all your other accounts together with your mortgage account so that the interest is calculated on the net borrowing of everything you have. So for the time you have a credit balance in your current account this will be deducted against your overall mortgage loan for interest purposes. This is a variable rate product for LTV up to 75%.
Most products carry an arrangement fee anywhere from £695 but you may be able to negotiate this down if you are already a Cumberland Building Society customer. There are generally early redemption penalties if you close your mortgage deal before the deal period has completed and this may be a percentage of your overall loan and in some cases the discounted amount as well.
The actual interest rate charged also varies by product depending on two factors:
With the Cumberland Building Society they will pay for the valuation made on your property and receive free legal fees if you use a nominated society solicitor which is something not all lenders offer these days.
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