The Cambridge Building Society has made its 98% LTV First Step 2-year fixed mortgage available to all intermediaries, alongside the launch of expat buy-to-let and holiday let products.
The Cambridge Building Society has made its 98% LTV First Step 2-year fixed mortgage available to all intermediaries.
The product, priced at 5.89%, is available from 8th July and is designed to support first-time buyers with smaller deposits.
The move forms part of a wider product launch, which also includes the reintroduction of an expat buy-to-let 2-year fixed mortgage at 5.74% and a buy-to-let holiday let 2-year fixed rate mortgage at 5.64%.
First Step is available exclusively to first-time buyers and allows borrowing up to 98% of the property value, with a maximum loan size of £500,000.
The Cambridge will lend up to 5.5 times household income where affordable. Gifted deposits and loans on new-build houses are accepted, while self-employed applicants are considered in line with the society’s standard criteria.
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 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.”
The product comes with a £499 fee and includes a free basic property valuation. Borrowers can overpay by 10% each year to help build equity more quickly.