Mortgage News
Cambridge BS launches 95% LTV deal
Cambridge Building Society has launched a stepped interest rate five-year fix up to 95% LTV for first-time buyers, offering a lower rate in the first year.
The Easy Start mortgage has an interest rate of 5.29% for the first year of the fixed rate deal, before rising to 6.49% for years two to five.
The deal has an application fee of £599.
Mark Smitheringale, head of sales and marketing at the Cambridge, said: “We are totally committed to supporting the home ownership aspirations of first-time buyers across our wider East Anglia lending area. This exciting new proposition eases new borrowers into the commitment of owning their first home, with a reduced interest rate and only a 5% deposit requirement.
“This is a genuine interest rate giveaway rather than a deferment of interest to be repaid over future years
“It also comes with the security of a long-term fixed rate which will protect new homeowners when the inevitable increase in interest rates begins.”
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David Hollingworth, head of communications at London & Country, said: “Mortgages to 95% of the purchase price are few and far between so this launch will be welcomed by first-time buyers.
“Borrowers will be eased into their mortgage deal with a lower rate initially although they do need to prepare for their rate increasing in the second year.”