The mutual has cut its five-year fixed rate mortgage from four per cent to 3.79 per cent, and its two-year discounted product from 3.39 per cent to 3.34 per cent.

The two-year fixed rate is priced at 3.69 per cent and is available up to 75 per cent loan to value (LTV).

The products have no application fees and completion fees have fallen from £1,500 to £999 across the range.

There are early repayment charges in place on the products, starting at two per cent for the two-year products and five per cent for the five-year product. They reduce by one per cent each year of the term.

Sponsored

Shaping the mortgage market around today’s first-time buyer

Sponsored by Newcastle for Intermediaries

The mutual will also use projected low, mid and high season weekly rental yields multiplied by 30 weeks to calculate annual rental income.

Across the holiday let range, the maximum LTV is pegged at 75 per cent and the loan size is between £50,000 and £500,000. Loans are available for purchase, remortgage, product switches and further advances.

Cambridge’s head of lending, Tracy Simpson, said: “We’re excited to add another great product to our range of competitively priced holiday let mortgages, as well as making it cheaper for customers to complete.”

The mutual has been making changes to its offering, temporarily withdrawing BTL portfolio lending earlier this week and reduced rates and removed fees for shared ownership range last week.

It has also brought back top-slicing for BTL mortgages and launched self-employed mortgages for pandemic entrepreneurs.