Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Cambridge Building Society Expands 98% LTV Mortgage to Whole Market

The Cambridge Building Society has announced that its 98% loan-to-value (LTV) First Step two-year fixed mortgage, set at 5.89%, will be available to all intermediaries from 8 July. This move is intended to increase access to high LTV mortgages for first-time buyers with small deposits.

The First Step mortgage is exclusively for first-time buyers, allowing borrowing of up to 98% of the property value with a maximum loan size of £500,000. The Cambridge will lend up to 5.5 times household income, subject to affordability, and accepts both gifted deposits and loans on new build houses. Self-employed applicants are also considered according to the society’s standard criteria.

This change is part of a broader product launch by The Cambridge, 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%.

For letting agents and inventory clerks, the expansion of high LTV mortgage options may support increased activity among first-time buyers and landlords, particularly those seeking to enter the market with smaller deposits or invest in new build properties.