May 14, 2021
The Cambridge Building Society launched low deposit mortgage products today to support the growing demand from First Time Buyers who’ve saved a five per cent deposit.
The average cost of a first home in Cambridge is £333,000 this means first time buyers choosing a low deposit mortgage would need £16,650, far more attainable when compared with a 10 per cent deposit at £33,300.
Saving a large enough deposit has been a significant barrier for First Time Buyers in recent years, however the pandemic has brought with it the opportunity for people to save. Reports suggest that without the costs of commuting and socialising people have saved on average an extra £14,000. A low deposit mortgage coupled with their ability to save could see 2021 being the year many buyers step into their first home.
Matt Barber, Mortgage Manager at The Cambridge, comments: “We’ve been able to support a large number of customers over the last 12 months, but we know the low deposit options have been limited. We’re excited to be offering even more choice and making home ownership more attainable.”
Harry Chennells, senior negotiator at Cheffins in Cambridge, says: “We’ve seen enquiries from First Time Buyers in the Cambridge area increase by around 50% since the launch of the Government’s 95% mortgage scheme. This is a great move from The Cambridge and we too look forward to helping local First Time Buyers achieve their home-buying dreams this year.”
The new low deposit products from The Cambridge include two year discount, two year fixed and five year fixed options, has rates starting at 3.89 per cent and no completion fees. The enhanced low deposit products from The Cambridge complement their 90 per cent LTV range launched six months ago and are built to help First Time Buyers and those seeking to move home with smaller deposits.
|Product||Initial interest rate||Application Fee||Completion Fee||Early Repayment Charge|
|2 Year Discounted||3.89%||£199||£0||1%|
|2 Year Fixed||3.99%||£199||£0||3/2%|
|5 Year Fixed||4.09%||£199||£0||5/4/3/2/1%|