The Cambridge adds five-year option to 98% LTV product
The Cambridge Building Society has broadened its 98% loan-to-value (LTV) First Step mortgage with the addition of a five-year fix.
The product is available to first-time buyers and requires a minimum 2% deposit, which can be gifted by close family members.
The First Step mortgage is available on loans up to £500,000, with a loan-to-income (LTI) ratio of up to 5.5 times income. It can be used to purchase new-build homes and builder incentives may be considered, subject to lending criteria. The mutual offers two- and five-year fixed rate terms.
The product also includes a free valuation.
Dan Barker, product and propositions manager at The Cambridge, said: “Many first-time buyers continue to face challenges raising a significant deposit, despite being able to demonstrate a strong track record of managing their finances and meeting monthly housing costs.
“Our First Step range has been designed to help bridge that gap and support more people onto the property ladder. By introducing a five-year fixed rate option, we’re providing intermediaries with greater flexibility and giving their clients additional certainty over their monthly payments at a time when affordability remains a key consideration.
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“We know there are many aspiring homeowners who may not realise the options available to them, and we would encourage anyone considering a first home purchase to speak to a mortgage intermediary to understand what support may be available.”
