The Cambridge relaunches unique 2% deposit mortgage

April 29, 2022

The Cambridge Building Society has relaunched its two per cent deposit First Step Mortgage range to help first time buyers purchase their first home. It is believed to be the only product of its kind on the market.

First Step was initially launched in 2018, as part of its ‘Making The Difference’ initiative, with the aim of helping existing members of modest means in its local area get onto the housing ladder.

The product was withdrawn, alongside all higher LTV mortgages, when the COVID lockdown was announced two years ago, due to the uncertainty of house prices and the hit to the wider economy as a result of the pandemic.

Chief Commercial Officer, Carole Charter, said: “We are delighted to at last be able to relaunch our First Step Mortgage range.

“We take our commitment to the community very seriously and know that without our help many people would struggle to have the home they need.

“Saving for a deposit of thousands of pounds is difficult, especially in and around Cambridge, which is one of the UK’s most expensive areas. We see it as our duty as an independent mutual to make it easier for people to take that first step on the property ladder.”

The First Step Mortgage range allows customers to buy a home with only a two per cent deposit, at rates aligned with the Society’s five per cent deposit range, which means the additional benefit is not at the cost of a higher interest rate. The products also feature a low fee of £199 and a free valuation.

The range is available to direct applicants looking to buy a property within 15 miles of The Cambridge’s 13-strong branch network, and through a limited number of mortgage intermediaries.

Next week we will also launch a new, fee free two-year discount mortgage at 1.74 per cent, as well as increase our maximum loan sizes on our 90 per cent LTV from £525k to £600k and £400k to £500k on our 95 per cent LTV. The 95 per cent will be available for both purchase and re-mortgage lending (currently purchase only).