First Step Mortgages
2% Deposit Mortgages for First Time Buyers
At The Cambridge for Intermediaries, we keep things simple, straightforward, and solutions‑focused with our First Step 2 and 5 Year Fixed Rate Mortgages. These products offer up to 98% LTV to give eligible First Time Buyers with smaller deposits a real route to homeownership.
Product Details
Maximum LTV 98%
2 Year Fixed Rate Initial Interest Rate 6.69%
5 Year Fixed Rate Initial Interest Rate 6.79%
Maximum Loan Size £500,000
Product Application Fee £0
Product Completion Fee £499
Minimum Purchase Price £100,000
Key Highlights
✓ Up to 5.5x household income, subject to affordability
✓ Gifted deposits from immediate family members considered
✓ New build houses considered
✓ Builders incentives up to 5% accepted
✓ Self employed applications are considered
✓ Every application is individually assessed on personal circumstances, not credit scores alone
Key Highlights
✓ Up to 5.5x household income, subject to affordability
✓ Gifted deposits from immediate family members considered
✓ New build houses considered
✓ Builders incentives up to 5% accepted
✓ Self employed applications are considered
✓ Every application is individually assessed on personal circumstances, not credit scores alone
Criteria at a glance
We keep our lending rules straightforward so you can give your First Time Buyer clients clear, confident answers from day one.
Affordability and deposit guidance
- High LTI caps apply across single and joint applicants. We review overall household affordability rather than relying strictly on automated credit scores.
- A gifted deposit letter and proof of donor funds are required. Acceptable donors include parents, grandparents, siblings, and guardians.
- Self-employed applicants are also considered in line with the Society’s standard criteria. We look at individual trading history and affordability rather than automated scorecards.
Property and valuation considerations
- New build houses are eligible up to 98% LTV, providing a route for clients purchasing on new housing developments.
- New build flats are excluded from the First Step range. Standard second hand flats and existing properties may be considered under our general lending criteria.
- Includes a free basic valuation for mortgage purposes. Any physical structural repairs or non standard construction details will be assessed individually by our underwriting team.
Full mortgage application checklist
✓ Proof of ID and address for all named applicants
✓ Income evidence, latest 3 months’ payslips (plus P60) or 2 years’ accounts / SA302s for self-employed clients
✓ 3 months’ consecutive primary bank statements showing income and everyday living expenses
✓ Proof of accumulated savings and signed ‘Gifted Deposit’ declaration (where applicable)
For further information on all of our Residential and Buy to Let criteria, click below.
Check out our Affordability Calculator
The perfect tool to help your customer understand what they can afford. Input the customer's details into the calculator and it will give you an indication of whether we can support with their case.
Need help with a case? Contact our team for support. You can call them on 0345 601 2744 or send them an email at intermediary@cambridgebs.co.uk.