With just a 2% deposit, your first home could be closer than you think with our First Step mortgage.
Buying your first home is an exciting milestone, but saving for a deposit can be one of the biggest challenges for many first-time buyers. Many mortgages require a deposit of at least 5% of the property’s value, which can take time to build while managing everyday living costs.
Our First Step Mortgage is designed to help first-time buyers get onto the property ladder with a smaller deposit. As a low deposit mortgage, it may allow eligible buyers to purchase their first home sooner than they expected.
In this guide, we explain how the First Step Mortgage works, its key features, and what to consider when applying for a first-time buyer mortgage.
What is the First Step mortgage?
The First Step mortgage from The Cambridge Building Society is specifically for first-time buyers. It allows eligible applicants to borrow up to 98% of a property's value, meaning a minimum deposit of 2% of the property's value may be required.
The mortgage is available with 2 or 5 year fixed-rate options, helping to provide certainty over monthly repayments during the initial deal period. It is offered on a repayment basis, meaning your monthly payments gradually reduce the amount you owe over time.
As with all mortgages, applications are subject to lending criteria, affordability checks and credit assessment.
Key features of our First Step mortgage
Our First Step mortgage includes features to support first time buyers.
- Minimum 2% deposit (up to 98% loan to value)
- 2 year and 5 year fixed rate options
- Gifted deposits accepted
- Available for eligible new build properties (excluding new build flats)
- Loans up to £500,000, with terms of up to 40 years
- Free basic valuation included
All mortgages are subject to application, credit scoring, affordability and lending criteria.
Who is our First Step mortgage suitable for?
The First Step Mortgage could suit you if you:
- Are buying your first home
- Have limited savings for a deposit
- Are receiving help a gifted deposit from family
- Are employed or self-employed and able to evidence your income
- Are purchasing a new build property
Our mortgage advisers will talk through your circumstances and help you decide whether this mortgage is right for you. They'll also explain how much you could borrow, what your monthly payments could look like, and guide you through the application process.
View our First Step mortgages
You can view our First Step mortgage products below, including our 2 Year Fixed Rate and 5 Year Fixed Rate options.
How much deposit do I need?
The amount of deposit required for a mortgage is a percentage of the property's value. Many mortgages require buyers to have a minimum deposit of at least 5%–10%.
With our First Step mortgage, eligible first time buyers may be able to buy a home with a minimum deposit of 2% of the property's value.
Example deposits based on property value:
| Property value | 2% deposit |
| £250,000 | £5,000 |
| £300,000 | £6,000 |
| £325,000 | £6,500 |
Want to take the next step towards your first home?
Taking your first step onto the property ladder often comes with questions. Understanding how mortgages work, how affordability is assessed, and what to expect during the application process can help you feel more confident about what to expect.
Our guides explain the key steps in buying a property and applying for a mortgage, helping you understand what happens at each step.
You might find these helpful:
- Buying your home: step by step - a guide to the main stages in buying a property
- Making it simple: applying for a mortgage - what happens during the mortgage application process
- Ready for your mortgage interview? - what to expect when you speak with a mortgage adviser
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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