Cambridge

The Cambridge Building Society is a local, mutual building society that has been helping people with their savings for over 170 years¹. Its business is mortgages and savings, including cash ISAs, and it offers savings accounts you can add to or withdraw from whenever you like². Money held in its savings accounts is protected by the Financial Services Compensation Scheme up to £120,000 per person⁴.

Because it is a mutual, it is owned by its members rather than shareholders, and opening an account makes you a member¹. It does not offer current accounts, credit cards, personal loans or insurance of its own, so if you are comparing it with a bank, the comparison is really about mortgages and savings. This page explains what it sells in each of those areas, how its charges work, how you apply and manage money with it, and what happens if things go wrong. For the wider picture on each product type, see our guides to mortgages, savings accounts and ISAs.

Mortgages from Cambridge Building Society: the types on offer

The Cambridge offers a range of mortgage deals for buying a home, remortgaging, additional borrowing and Buy to Let, each with different lending criteria and deposit requirements⁶. Within that range there are products aimed at particular groups. For first time buyers it offers Shared Ownership Mortgages, Help to Buy Mortgages and Low Deposit Mortgages². For existing home owners it offers remortgages, whether you are looking for a better deal, want to extend your term or borrow more money². If you already have a Cambridge mortgage and want to borrow more, this is called a further advance⁷.

Its shared ownership mortgages have their own rules. The property purchase must be arranged through a registered Housing Association, you can borrow up to 95% of your share, and there is a maximum share of 75%⁸. The society also offers shared ownership remortgages, including for staircasing, where you buy a bigger share of your home⁸.

It has also introduced mortgage products specifically for self-employed workers who have started their own business and want to buy a home⁹. If you have two or more years of accounts, you can apply for any mortgage in its range, subject to affordability and its usual lending criteria⁹. How much you can borrow is calculated in relation to your affordability and whether you could keep up repayments if interest rates rose or your circumstances changed, and it may also depend on the type of property¹⁰. If you are weighing up how a building society mortgage compares with other lenders, our mortgages guide and buying a home pages set out the general ground.

Applying for a Cambridge mortgage, from decision in principle to completion

An application usually starts with a decision in principle, which the society describes as confirming that it would be willing to help you with a mortgage, subject to verifying the information you have provided, completing a full credit search and carrying out a property valuation when one is required¹¹. From there, the process begins with an initial enquiry that normally takes between 10 and 15 minutes, followed by a mortgage interview of about 90 minutes, and an application that takes between 30 and 45 minutes to complete¹¹.

Once the application is in, you receive email updates at each stage: on receipt of the application, when a valuer has been instructed, when the valuation has been received, when it is assessed as satisfactory, when funds are set up for release, and when the mortgage has completed¹¹. Funds are released to your legal representative one working day before the agreed completion date¹¹. Before that, you receive a formal written offer stating how much the society will lend, for how long, and how much you will repay in total¹⁰.

For a remortgage, the steps are set out as: speaking with one of the society's mortgage advisers, application and valuation, legal work, and the switch completing⁷. Appointments can be face-to-face or over the phone, whichever suits you⁷. If you are moving home and want to take your deal with you, porting is not automatic: you are not transferring the loan, so you need to apply for a new mortgage and meet the current lending criteria, with the existing mortgage also having to suit the new property¹².

Mortgage fees and costs: what borrowers pay

Cambridge does not publish a single set of fees for every mortgage, because the charges vary by the deal you choose, and this page carries no product figures: the society's own mortgage tariff and product pages set out today's amounts¹³. What you can expect is a small number of standard charge types. There is a completion fee, which is what you pay the society to complete your mortgage; in some cases it can be added to the mortgage balance, and where it is, interest is charged on it at the same rate as the rest of your borrowing¹³. There is a valuation fee, which depends on the value of the property, though some mortgages include a free valuation¹³. And there is a fee for releasing the mortgage funds, listed in the tariff¹³.

For some types of mortgage the society asks for an application fee before the mortgage can be considered, and that fee is non-refundable¹⁰. Legal work is a separate cost: it must be arranged through a legal representative and, unless otherwise stated, the borrower is responsible for it¹⁰. There are ways these costs can be reduced. For some mortgage deals the society pays for the standard valuation report, standard legal fees may be covered with certain mortgages, and selected remortgage deals come with free standard valuation and legal fees⁷. The society says it has worked with the Council of Mortgage Lenders and Which? to display its fees clearly, so the figures for any specific deal are in its product details and tariff¹³.

Overpayments and early repayment charges

You can make overpayments on most Cambridge mortgages, which reduces the interest you pay and can shorten the term¹⁵. With certain products you can make extra payments whenever you like¹⁰. The society's advice is to check your mortgage offer for any overpayment limits and early repayment charges before paying extra¹⁵.

The early repayment charge is the fee you may have to pay if your mortgage is repaid or transferred during the initial product period, or if you overpay more than the maximum allowed¹⁰. The amount varies, and your mortgage offer holds the full details¹³. The same charge is the main cost to weigh up if you are thinking of changing product mid-deal: your mortgage might have early repayment charges that apply¹⁶, and if you leave your deal before it ends, your current lender may charge one¹⁴. In practice this means overpaying within the allowed limits is usually free, while paying off the loan or switching away during the deal period carries a cost that only your offer document can quantify.

Fixed or discounted deal ending: switch or revert

Around three months before your current deal ends, the society contacts you about your current rate, including the end date, the product you would revert to and how to switch¹⁵. It writes to fixed and discounted rate customers at least 90 days before the deal matures, setting out your options¹⁷. If you take no action, your mortgage transfers to the society's Standard Variable rate, or its Buy to Let Variable rate, depending on the type of mortgage you have¹⁷.

You may be able to switch up to 90 days before your deal ends without paying an early repayment charge¹². An online switch is available to existing customers whose deal is ending, provided you are happy to choose a new deal without advice, are not making any other changes, and your mortgage is not on the excluded list¹⁷. The online switch has its own conditions: there must be more than 120 days left on your current deal, at least two years remaining on the term, and the loan must not be over 90% loan to value¹⁷. You need your mortgage account number, full name, date of birth and the postcode of the property, and you must complete the switch at least 14 days before the 1st of the month you want the new deal to start¹⁷. Any changes after submitting a switch must be made at least 14 days before the switch date, and the offer produced online is only valid for the day it is produced¹⁷. Once the switch completes, a letter follows within five working days confirming the new deal and monthly payment¹⁷.

Under the Mortgage Charter, customers who are up to date with payments can switch to a new deal with their lender at the end of a fixed-rate agreement without a new affordability check¹⁸. Separately, note that Cambridge's variable and discounted rates do not track the Bank of England base rate: if you do not switch when your fixed rate ends, you revert to the standard variable rate or buy to let variable rate, and the society decides how much of any base rate change to pass on, which could be the full amount, part, or occasionally none¹⁹.

Cambridge savings accounts and cash ISAs

The Cambridge offers a range of savings accounts, from easy access accounts, which it describes as a safe place for savings you can add to or withdraw from whenever you like, to children's savings and business savings accounts¹. Business savings are available to sole traders, partnerships, limited companies, public limited companies, registered charities and housing associations²⁰. Accounts can be opened online, in branch or via The Cambridge Money App, as with its Your Saver account²¹.

On the ISA side, the Cambridge currently offers cash ISAs only²⁰. You can only pay into one cash ISA with the society in each tax year, though savings from previous tax years held in a cash ISA can be transferred to another provider during the tax year²². Cash ISAs can be opened in branch, by phone or by post, and selected cash ISAs can also be opened online or via the app²³. ISA transfers work in both directions: you can transfer savings from an existing Cambridge ISA into a new cash ISA with the society, and you can transfer an ISA in from another provider²⁴. Current tax year ISA subscriptions must be transferred in full, while previous years' funds can be transferred in full or in part²³. Its Double Access ISA, for example, can be opened online, in branch, by phone, via the app or by post, and accepts transfers in from another provider or from funds already held with the society²⁵.

One ISA type the society does not offer is the Lifetime ISA, which is a separate kind of ISA with its own subscription limit of £4,000 per year and charges for certain early withdrawals²⁶. If a Lifetime ISA is what you are after, you would need a different provider. Products are subject to availability and may be withdrawn without notice, so the current range is on the society's website²³. For how cash ISAs work in general, see our ISAs guide, and for savings accounts more broadly, our savings guide.

How savings interest is paid, and what happens at maturity

Interest on Cambridge savings accounts is calculated on the balance of your account at the end of each day and paid annually, with annual interest paid on 31 December²⁷. You earn interest from the day you pay funds into your account until the day before you withdraw them²⁷. Interest is also paid on maturity and on closure²⁸. Where the interest goes depends on the account: it can be added to the balance of your account, transferred to another Cambridge account, or paid to an external account with another bank or building society²⁷.

When a fixed-term account matures, you choose what happens to the money. The options are to open a new account, move it to an existing account, transfer it to your nominated bank account, request a cheque, or do nothing²⁹. Instructions can be set online for personal savings accounts before maturity, and you can change them up until the day before your maturity date²⁹. If you reinvest into another account with the society, the funds normally transfer automatically on maturity; a transfer to your nominated bank account is made shortly after the maturity date; and a cheque takes about a week to arrive in the post²⁹.

Paying in, withdrawing and cash limits

For cash withdrawals in branch, the society's cash ISA rules allow up to £500 in cash over the counter²³. Larger amounts, or withdrawals you would rather not carry in cash, can be transferred to your nominated bank account, arranged in branch, by telephone or online via secure message²³. Savings accounts have minimum opening deposits, which vary by account, and the current figures are on the society's product pages²⁰.

Paying in and giving instructions is flexible. You can open accounts online, in branch or via the app²¹, and maturity instructions can be given online through your account, via the app, by phone, in branch, or by post using a maturity form²⁹. If you would rather talk things through, the society offers a savings review over the phone or an appointment at a branch²⁹. Its contact centre is Cambridge based³⁰.

Banking with Cambridge: branches, phone, online and the app

There is no Cambridge current account, so day-to-day banking is done elsewhere; what the society provides is online and app management of your savings and mortgage. Each member has a unique User ID which, with a password, allows you to log in online or via the app to view and manage accounts²⁸. To get started, you call the Customer Contact Centre on 0345 601 3344 to request a User ID, receive a temporary password by text, then set a new password and a memorable question¹. You can also get a User ID by visiting a branch or calling 0345 601 3344³.

The Cambridge Money App is available in the App Store and on Google Play, with login by Touch ID or a passcode³. For savings, it lets you check your balance, available funds, interest rate and maturity date, check your unused ISA allowance, open new savings accounts, create and track savings goals, transfer money between accounts, set maturity instructions and view your nominated bank details³. For mortgages, you can check your outstanding balance and next payment, track repayment progress, and view your interest rate, term end date, revert rate and deal end date, including on split mortgages, as well as estimate your home equity³. You can also view and download documents, update contact details, send and receive secure messages, record accessibility needs and find your nearest branch³.

Mortgage payments themselves are made monthly by Direct Debit, which the society states is a condition of the mortgage³¹. You can manage your mortgage account online with the app, which is set up by phone¹². To use the app you need to register for online access first, by calling the Customer Contact Centre or visiting a branch³¹.

Contacting The Cambridge and raising a concern

The main route in is the phone. The society's Customer Contact Centre is on 0345 601 3344, and it says it will only contact customers by phone at a reasonable time, between 8am and 9pm¹⁶. There is a dedicated number for customers who have lost their passbook or security information³². If you ever have concerns about the security of your account or information, the society asks you to call straight away on 0345 601 3344³³. Its help centre also carries FAQs and guides covering mortgages, savings and additional support³².

The society can communicate with your solicitor or a nominated third party, though they cannot make decisions on your behalf¹⁶. Third-party access can be revoked at any time unless it is a court-appointed arrangement; where an attorney is appointed under a power of attorney, the attorney needs to call to discuss removal, or you need to ask the Office of the Public Guardian³³. If you have a complaint about a financial service and are unsure whether the rules were followed, Citizens Advice explains how to check and what you can do about it³⁴. Complaints that the society cannot resolve can be taken to the Financial Ombudsman Service, and our consumer protection page explains how that process works.

Struggling with mortgage payments: what Cambridge offers

The society has a Financial Support team it describes as highly trained, able to offer tailored support, and it makes the point that talking about your financial situation will not affect your credit rating³⁵. It also contacts customers whose mortgage deal is coming to an end three months before it ends, to explain the options³⁵. More broadly, lenders can help if you are struggling, which could include reducing your monthly payments or taking a break from payments for a few months³⁴.

The society sets out what happens at each stage. Once a payment shortfall reaches a certain stage, it writes quarterly with the position and any costs charged because of the arrears¹⁶. If you do not keep in touch, it may use a field agent, and any costs incurred are passed to you¹⁶. If reduced payments are agreed as a short-term arrangement, the difference between the arrangement amount and your contractual payment shows as arrears on your account¹⁶. For longer-term difficulties, a permanent switch to interest-only is possible, but you need to meet the lending criteria to repay the full balance at the end of the term; and after difficulties improve, capitalisation of arrears increases the overall debt and the cost of repaying the mortgage¹⁶.

Where payments are missed with no arrangement in place, the default remains on your credit file for six years¹⁶. If the property is sold and does not raise enough to pay off the debt, you are responsible for the shortfall, and the society will contact you within six years of the sale, five years in Scotland, to arrange repayment; where indemnity insurance covers a shortfall, the insurer also has the right to ask you to pay back what it paid out¹⁶. Handing in the keys does not end the liability: you remain responsible for any sale shortfall¹⁶.

The society states its position plainly:

It will only start legal action if a solution cannot be reached¹⁶. If repossession does happen, its commitments include selling the property as soon as possible for the best price, giving you reasonable time to take your possessions, using the money raised to pay the mortgage and other secured debts, and paying you anything remaining¹⁶. It can refer you directly to The Money Adviser Network for free confidential help, and it can offer an Assisted Voluntary Sale scheme where time to sell is the answer¹⁶. HLPAS, the main source of legal aid for possession cases, gives access to legal advice on mortgage debt, housing, debt or welfare benefits from the point there is a risk of possession proceedings¹⁶. Free debt help more generally is covered in our debt guide.

When an account holder dies

After you notify the society of a death, it needs to see the death certificate within the next three months, and there is no need for it to see the will³⁶. Until it has received the certificate, it may not be able to discuss the details of any accounts the person held, because of data protection³⁶. It then sends a confirmation letter detailing how the mortgage is held at the Land Registry, whether in sole or joint names or as tenants in common, and whether there is a physical pack of deeds or a live endowment policy³⁶. The society or your solicitor notifies the Land Registry of the death, and the Land Registry updates the title deeds to reflect it³⁶.

For joint accounts, the general rule is that if an account holder passes away, the joint account continues in the remaining names³⁷. Our life events page covers the wider money tasks after a bereavement.

FSCS protection for Cambridge savers

The society is covered by the Financial Services Compensation Scheme. In its own words:

The FSCS protects eligible deposits up to £120,000 per person⁵. The £120,000 limit applies per person, so a couple with a joint account would need to consider how their money is split across accounts and providers; our consumer protection page explains how the limit works in practice.