The Cambridge Building Society has reduced rates and introduced a discount mortgage to its low deposit range as it looks to support first-time buyers.
The lender has cut 90 per cent LTV fixed rates by up to 0.5 percentage points, in addition to launching a two-year discount product.
The range is available to homemovers as well as first-time buyers, with rates starting at 2.89 per cent on its discount mortgage.
The building society said it expected the discount product to be “particularly popular”, with no completion fees and the flexibility to overpay by up to 10 per cent.
Product | Initial interest rate | Application Fee | Completion Fee | Early Repayment Charge | Over- payments |
|---|
2 Year Discounted | 2.89% | £199 | £0 | 1% | 10% |
2 Year Fixed | 3.39% | £199 | £800 | 3/2% | 10% |
5 Year Fixed | 3.49% | £199 | £800 | 5/4/3/2/1% | 10% |
Kathy Bowes, mortgage manager at The Cambridge, said: “The housing market has remained reassuringly buoyant and busy, whilst this is great for us and our intermediary partners, we recognise it makes it more difficult for people to get on the housing ladder.
“Our enhanced range for those who have a 10 per cent deposit is yet another way The Cambridge are striving to support both first time buyers and those looking to move.”
The building society noted rising house prices with the average property price in its home county of Cambridgeshire at £302,602 in November 2020, according to the UK House Price Index, up 3.09 per cent year-on-year.
Corey Whelan, director at Cambridgeshire Money, commented: “Over the last few weeks I’ve really enjoyed seeing a lot of lenders re-entering the 90 per cent LTV space and supporting those with smaller deposits. It feels a world away from where we were even a few months ago.
“The Cambridge Building Society expanding their range is great for customers with a range of options becoming more available to suit all circumstances and this added competition can only be good news with rates beginning to decrease with the lenders starting to compete for the business again.”
chloe.cheung@ft.com
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