The Cambridge Building Society has made its 98% LTV 'First Step' mortgage available to all intermediaries.
The two-year fixed rate mortgage is available to first-time buyers at 5.89%, with borrowing of up to 98% of the property value and a maximum loan size of £500,000.
The Cambridge will lend up to 5.5 times household income, where affordable, and both gifted deposits and loans on new build houses are accepted. Self-employed applicants are also considered in line with the Society's standard criteria.
First Step comes with a £499 product fee and includes a free basic property valuation. Borrowers can overpay by 10% annually to help increase equity in the property more quickly if they are able.
All mortgage applications are assessed on individual circumstances rather than credit scores alone. The minimum purchase price is £100,000 and First Step is not available for lending on new build flats.
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 holiday let two-year fix 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% 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.”
