Cyborg Finance
Home
News
New 2% deposit mortgage

First Step stands out for what it allows. It accepts gifted deposits, lends on new-build houses, and considers self-employed applicants.

New 2% deposit mortgage

A new 2% deposit mortgage just opened, and it could unstick you if saving a deposit has been the blocker.

The First Step mortgage lets you borrow up to 98% of a property's value. As such a £200,000 home needs just a £4,000 deposit.

On 8 July 2026, the building society behind the product made its two-year fixed rate (5.89%) available.

The headline terms:

  • 2% deposit minimum
  • 2-year fix at 5.89%
  • Lending up to 5.5x household income
  • Maximum loan £500,000
  • £499 product fee
  • Free basic valuation
  • Overpay 10% of your balance each year without early repayment charges
  • 7.4% APRC (overall cost for comparison)

First Step stands out for what it allows. It accepts gifted deposits, lends on new-build houses, and considers self-employed applicants. It is available in England and Wales.

But borrowing at 98% LTV carries real risk. You start with almost no equity. If house prices stall or fall, you can slip into negative equity — meaning you owe more than the home is worth.

2% Deposit Mortgage Infographic

Get in touch

We are your online mortgage broker, offering you the convenience of applying for a mortgage online. However, we understand that sometimes you may prefer to speak with a human - phone, email or in person.

Phone number
01133 205 902
Postal address
31 Bradford Chamber Business Park,
New Lane, Bradford, BD4 8BX

Looking for a career in Mortgage Advice? View job openings.

Your message
Your Name
Your Email
Your Phone Number

Please provide either an email address or a phone number so we can reply. Name and message are optional.

FCA Authorised

We are authorised and regulated by the Financial Conduct Authority (No. 919921). The Financial Conduct Authority does not regulate most Buy to Let mortgages.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Our initial consultation is free. If you choose to proceed, we’ll explain any broker fees upfront before you commit.

British Company

Cyborg Finance Limited is registered in England and Wales (No. 12131863) at Bradford Chamber, New Lane, Bradford, BD4 8BX.