The Cambridge Building Society is making its 98% Loan-to-Value (LTV) First Step two-year mortgage at 5.89% available to all intermediaries from 8 July.
The association aims to help increase access to 98% LTV mortgages for starters with small deposits.
The change is part of a wider mortgage product launch, which also includes the reintroduction of an Expat buy-to-let (BTL) two-year fixed mortgage at 5.74% and a BTL holiday let two-year fixed mortgage at 5.64%.
First Step is available exclusively to first-time buyers, with a loan 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 family income, where affordable and both grants and loans for new-build homes will be accepted.
Self-employed applicants will also be considered as meeting the association’s standard criteria.
The Cambridge product and proposition manager Dan Barker says: “We know intermediaries are looking for practical options to support first-time customers who can demonstrate affordability but may not have access to a large down payment.”
“Making First Step 2 Year Fixed available across the market gives brokers a new route to consider for eligible customers looking to borrow up to 98% of the loan to value.”
“The product continues to be supported by responsible lending criteria, individual underwriting and fixed monthly payments, allowing intermediaries to solve cases where a lower down payment is the main barrier to home ownership.”