We've relaunched our First Step mortgage to help first time buyers

We've relaunched our First Step mortgage to help first time buyers take their first step onto the property ladder - offering first-time buyers the chance to purchase a home with just a 2% deposit. 

Our First Step mortgages are available on homes across England and Wales and are initially offered through direct and Cambridge Select partners. 

With the cost of living making it harder for many people to save, building a deposit remains one of the biggest barriers to home ownership. The relaunched First Step mortgage has been designed to reduce that challenge, while still offering the security of fixed monthly payments and a responsible approach to lending. 

First Step is available exclusively to first-time buyers, 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.  

Dan Barker, Product and Propositions Manager at The Cambridge, said: 

“Saving for a deposit is one of the biggest challenges facing first-time buyers, particularly renters who are already managing high monthly housing costs. By relaunching our First Step mortgage, we’re helping people who can afford mortgage repayments but struggle to save a large deposit to take a realistic step towards owning their own home. 

“At the same time, we’ve made sure the product is built around responsible lending, with careful affordability checks and the reassurance of fixed monthly payments.” 

The First Step range includes a choice of two fixed-rate mortgages. Customers can opt for a two-year fixed rate at 5.19% or a five-year fixed rate at 5.49%, giving them certainty over their repayments during the early years of home ownership.  

Both options come with a £499 product fee, and include a free basic property valuation, helping to keep upfront costs down. 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. Minimum purchase price is £100,000. First Step is not available for lending on new build flats. 

The Cambridge was named Best First-Time Buyer Mortgage Provider for the third consecutive year at the MoneyNet Awards in January - for supporting first-time buyers through a range of innovative products, including its innovative Rent to Home scheme which relaunched last week. 

To discuss a product or talk through a case, call 0345 601 2744 or email the intermediary team at intermediary@cambridgebs.co.uk.