The Cambridge Building Society has expanded its First Step mortgage range with the launch of a new five-year fixed rate product, available through mortgage intermediaries across the whole market.
Designed exclusively for first-time buyers, the First Step range requires a minimum deposit of just 2%, which can be gifted by close family members.
The product is available on loans up to £500,000 and offers a loan-to-income ratio of up to 5.5 times income. It can be used to purchase new-build houses and builder incentives may also be considered, subject to lending criteria.
The new five-year fixed rate option, which assesses affordability using the pay rate, complements the Society's existing two-year fixed rate product.
The mortgage 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.
"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."
