The bank said it was aware that mortgage rates had been changing a lot recently, so it wanted to give applicants the opportunity to secure another deal.
The lender will only allow cancellations if the new deal being selected is with Santander, is pre-booked to start at a future date and is at least 14 days before it is set to begin.
Borrowers can choose a lower rate or a different deal, for example, switching from a tracker to a fixed rate or selecting a five-year fix instead of a two-year fix.
Early repayment charges will apply as normal if the product transfer is already active.
The Cambridge BS
The Cambridge Building Society has added a two-year interest-only discounted mortgage and five-year fixed rate to its range.
The interest-only discounted deal has a rate of 3.74 per cent and is available at 80 per cent loan to value (LTV). It also has no early repayment charge.
The five-year fix is priced at 5.34 per cent.
The newly launched deals sit alongside the mutual’s two-year fixed rate which has a rate of 5.64 per cent.
There is no minimum income requirement and loans can be taken up to 40 years. Loan sizes of between £75,000 and £750,000 are available.
Kathy Bowes (pictured), intermediary manager at The Cambridge, said: “We have launched these additional products to broaden the range and provide greater flexibility to a wider range of applicants, in line with our strategy to provide appropriate access to homes and housing.
“Mortgage affordability is assessed on an interest-only basis and our team of expert underwriters look at each application individually, which enables us to make sound lending decisions.”
