The Cambridge Building Society is making its 98% loan-to-value (LTV) First Step two-year fixed mortgage at 5.89% available to all intermediaries from 8 July.
The society aims to help to increase access to 98% LTV mortgages for first-time buyers with small deposits.
The change forms part of a wider mortgage product launch which also includes the reintroduction of a Expat buy-to-let (BTL) two-year fixed mortgage at 5.74% and BTL holiday let two-year fixed mortgage at 5.64%.
First Step is available exclusively to first-time buyers, with borrowing of up to 98% of the property value and a maximum loan size of £500,000.
The Cambridge will lend up to 5.5 times household income, where affordable, and both gifted deposits and loans on new build houses are accepted.
Self-employed applicants are also considered in line with the society’s standard criteria.
The Cambridge product and propositions manager Dan Barker says: “We know intermediaries are looking for practical options to support first-time buyer clients who can demonstrate affordability but may not have access to a large deposit.”
“Making First Step 2 Year Fixed available to the whole of market gives brokers another route to consider for eligible clients looking to borrow up to 98% loan to value.”
“The product continues to be supported by responsible lending criteria, individual underwriting, and fixed monthly payments, helping intermediaries place cases where a lower deposit is the main barrier to home ownership.”
