We've launched 98% LTV First Step mortgage to whole of market

We've expanded our 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 offers up to 98% loan-to-value (LTV), requiring 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 and gives intermediaries and their clients greater choice when looking to overcome deposit barriers to home ownership. 

The mortgage also includes a free valuation. 

Recent research from the Building Societies Association (BSA) found that 47% of aspiring homeowners have never spoken to a lender or mortgage broker about their homeownership options. The research also found that 67% of aspiring buyers believed they could purchase a property sooner than expected after learning about low- and no-deposit mortgage products available from building societies. 

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." 

For more information and full details of mortgage ranges and lending guidelines, click here.