The deal, which is a cut of 0.25 percentage points, is available on a two-year variable discount with a loan to value of 60 per cent loan to value (LTV).
The mutual has also launched a two-year fixed rate mortgage at the same LTV with a rate of 0.88 per cent.
In June the lender launched a two-year fixed rate remortgage with a rate of 0.98 per cent, which was the first time it has offered a sub-one per cent residential mortgage product.
It has also cut select remortgage products, with its two-year fixed rate at 85 per cent LTV dropping by 0.53 percentage points to 1.78 per cent.
Its two-year discounted mortgage has been reduced by 0.75 percentage points to 1.73 per cent.
Lewis Benson, area manager at The Cumberland, said that the rates were likely to be the lowest it had ever offered, and that this cut would give the best deal to members.
He said: “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 added that there was still pent-up demand due to limited housing stock so the housing market was unlikely to slow down in the coming months.