The Cambridge Building Society is making its 98% LTV first-time-buyer product available to all mortgage brokers from today.
Its First Step two-year fixed rate mortgage at 5.89% 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 said it will lend up to 5.5 times household income, where affordable, while accepting gifted deposits and lending on new-build houses, but not new-build flats.
The minimum purchase price is £100,000 and self-employed applicants are also considered in line with the society’s standard criteria.
Cambridge said the change forms part of a wider mortgage product launch which also includes the reintroduction of an expat buy-to-let two-year fixed mortgage at 5.74% and a buy-to-let holiday let two-year fixed rate mortgage at 5.64%.
Dan Barker, product and propositions manager at The Cambridge, said: “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 two-year fixed available to the whole of market gives brokers another route to consider for eligible clients looking to borrow up to 98% LTV.
“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.”
The product comes with a £499 product fee, and includes a free basic property valuation.
The Cambridge said all mortgage applications are assessed on individual circumstances rather than credit scores alone.