The Cambridge widens 98% mortgage to whole of market
The Cambridge Building Society has made its 98% loan-to-value (LTV) First Step two-year fixed mortgage accessible to the whole of the market, following a period of limited distribution.
The product is priced at 5.89% and is available to all intermediaries from 8 July to assist clients with smaller deposits.
The product is open to first-time buyers only, enabling borrowing up to 98% LTV against a maximum property value and loan size of £500,000. The Cambridge will lend up to 5.5 times income, while gifted deposits and loans on new-build houses are accepted. The mutual will also consider self-employed applicants in accordance with its standard criteria.
It has a £499 product fee and includes a free standard valuation. Borrowers can make overpayments of up to 10% each year.
The minimum purchase price is £100,000 and the First Step mortgage is not available for new-build flats.
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% LTV.
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“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 homeownership.”
