A broker's guide to Cambridge for intermediaries: Which clients they work well with

Discover Cambridge for intermediaries competitive products, mortgage criteria, and application process in this guide!

A broker's guide to Cambridge for intermediaries: Which clients they work well with

Helping your clients secure the right mortgage product takes time, care and strong lender partnerships. Cambridge for intermediaries gives mortgage brokers access to a mutual building society with a long history and a focused product range.

They have been helping property buyers in the United Kingdom for more than 150 years and are still providing the same quality service today. In this guide, Mortgage Introducer will look at what Cambridge for intermediaries can offer using their current product ranges and criteria.

Get to know Cambridge for intermediaries

Cambridge for intermediaries is the broker-facing arm of the Cambridge Building Society, which is based in Cambridge, Cambridgeshire. It was founded in 1850 under a different name and adopted its current name in 1945.

This building society is a member of the Building Societies Association (BSA) and is authorised by the Prudential Regulation Authority (PRA). The Cambridge Building Society is also regulated by the Financial Conduct Authority (FCA) and PRA.

As a mutual, it is owned by its members rather than external shareholders. Clients who take out a mortgage or open a savings account become members. This gives them influence over how the building society is managed and how it supports the community.

Useful tools from Cambridge for intermediaries

As for useful tools, Cambridge for intermediaries has two calculators: an affordability calculator and a residential income calculator. They also have a product finder and an intermediary online portal. Know more about it in this clip:

Discover the top mortgage intermediaries in the UK in this guide.

Lending criteria for Cambridge for intermediaries

To work out whether Cambridge for intermediaries suits your clients' cases, it helps to understand their lending criteria. Let's focus on the requirements for residential mortgages:

1. Age limits

The minimum age for residential repayment and residential Interest Only mortgages is 18. For Retirement Interest Only products, the minimum age at the start of the loan is 55, based on the youngest borrower.

There is no maximum age limit for clients on a residential repayment basis. For standard residential Interest Only, the maximum age is 80 at the end of the mortgage term. For Retirement Interest Only, the maximum age at the start of the loan is 85, again based on the youngest borrower.

2. Residency and visas

Your clients must have lived in the UK for at least two years when they apply. This allows Cambridge for intermediaries to complete a UK credit search. Up to 95% LTV is considered for clients with:

  • British citizenship
  • settled or pre-settled status under the EU settlement scheme
  • permanent right to reside

For clients on specific visa types with at least two years of UK residency, Cambridge for intermediaries can consider lending up to 90% LTV. Accepted visas include:

  • Skilled Worker visa
  • Health and Care Worker visa
  • Global Talent visa

For joint cases where one applicant has indefinite leave to remain, applications up to 95% LTV are considered. Spousal visas are acceptable alongside any of the above statuses. In all situations, the overall LTV is restricted by the residency status of the main applicant.

The deposit must come from the applicants' own resources rather than external sources such as unsecured borrowing.

3. Property construction types

Cambridge for intermediaries lends on standard construction homes, such as brick walls with tiled or slate roofs. Other construction types can be acceptable, subject to the valuer's comments. Examples include timber framed or thatched properties.

Some non-standard construction systems are classed as acceptable. These include:

  • Wimpey No-Fines
  • Easiform

Certain historic prefab systems are considered once repaired. These include:

  • Airey
  • Unity
  • Waites
  • Cornish
  • Calder
  • Aluminium

Other constructions are not acceptable, including:

  • British Steel Construction
  • Woolaway
  • Anglian Construction
  • Live work units
  • Properties using high aluminium cement

If you come across a property with an unusual build type that does not appear in this list, Cambridge for intermediaries encourages contact with the business development team. They will provide guidance on such matters.

4. Credit history approach

Cambridge for intermediaries carries out a credit search for all applicants. A soft search takes place at the decision in principle stage. A hard search is carried out when the full application is keyed, before full submission and payment of any fees.

Clients with some historic adverse credit can be considered where:

  • there have been no missed mortgage payments in the last 24 months.
  • there have been no more than two missed payments on loans, credit cards or other financial commitments in the last 24 months.
  • any county court judgments and defaults under £500 were satisfied at least 24 months ago.
  • bankruptcies, individual voluntary arrangements, county court judgments and defaults of £500 or more were discharged or satisfied at least 36 months ago

Where your clients fall outside these rules, Cambridge for intermediaries directs applications towards its Credit Assist product ranges. These are available in both residential and buy to let markets at lower LTVs and with set maximum loan sizes.

5. Income requirements

For income, you can refer to this income allowance table:

Income Allowance Conditions
Main Earned Income 100%  
Allowances 100%  
Overtime 50%  
Bonus Monthly / Quarterly / Annual 50% Evidence of 2 bonus payments required
Commission 50% 1-2 years evidence to be provided
Multiple Jobs 100% Minimum of 6 months
Investment Income 100% Refer to Business Development Team
Stipend 100% Maximum 80% LTV and a minimum of 12 months remaining at the time of offer
Pension 100% Pension statement to be provided
BTL Rental Income 50% If property is unencumbered
BTL Rental Income (Landlord with 4 or more Buy to Let Properties) 100% If constant evidence can be provided for 2 years
Room Rental 100% A minimum of 6 months evidence to be provided
Maintenance 100% Maximum 80% LTV
Acceptable via Court Order or Child Maintenance Service
A minimum of 6 months payment history to be provided, and
A minimum of 3 years payments will be receivable
Working Tax Credit 100% Benefits detailed in this section can be used when assessing affordability although no cases will be considered which rely solely on benefits
These benefits may be captured under Universal Credit
Child Tax Credits 100% Benefits detailed in this section can be used when assessing affordability although no cases will be considered which rely solely on benefits
These benefits may be captured under Universal Credit
Disability allowance 100% Benefits detailed in this section can be used when assessing affordability although no cases will be considered which rely solely on benefits
These benefits may be captured under Universal Credit
Child Benefit 100%  
Maternity Leave 100% We will always require an employer's reference with regards to maternity leave duration and pay
Car Allowance 100%  
Rent Allowance 100%  
Fixed Term Contracts 100% Ideally contracts should be with well-established organisations
There should be at least 6 months of the contract to run at the time of the offer
An indication of the likelihood of contract renewal is required
Zero Hours Contracts Not acceptable  

Cambridge for intermediaries' mortgage offerings

Cambridge for intermediaries offers a selection of residential and buy to let mortgages. Let's look at some of them below:

1. Residential mortgages

Cambridge for intermediaries offers a range of residential products for purchase and remortgage. These products run up to 95% loan to value (LTV), depending on the type of mortgage and your clients' circumstances. Headline features across the residential range include:

  • maximum residential loan size of up to £2 million for some products
  • up to 95% LTV on selected low deposit and shared ownership options
  • discounted variable products where overpayments are unlimited
  • fixed rate products with standard overpayment allowances of 10% per year
  • free valuations and free legal work on some remortgage products

2. Residential product switch and further advance options

Existing borrowers of the Cambridge Building Society can access a similar mix of products when they switch deals or take further borrowing. Cambridge for intermediaries lists these as existing client products. For standard residential lending, product switch and further advance options include:

  • 2- and 5-year fixed rates at 80% and 90% LTV
  • discounted variable products at 80%, 90%, and 95% LTV with no early repayment charges
  • low Deposit fixed and discounted variable products up to 95% LTV
  • shared ownership fixed and discounted products at 95% LTV
  • help to Buy fixed and discounted options at 75% LTV

Product switch fees are normally £0 for residential products, while further advance fees are often £400 or £200 depending on the product type. Early repayment charges and overpayment rules mirror the new business range. It also has 10% overpayments each year on most fixed products and unlimited overpayments on discounted variables.

Existing clients can also move into Credit Assist and Credit Assist Extra products or the Retirement Interest Only option. These follow the same LTV, fee, and overpayment patterns as the new business range, though product switch fees differ.

3. Retirement Interest Only

For older clients who fit Retirement Interest Only criteria, Cambridge for intermediaries has a variable rate product. It runs up to 55% LTV with a rate of 5.19% and there is no application fee. Overpayments are unlimited, and the maximum loan size is £750,000. This product is currently for remortgage only and includes free valuations and free legal work.

4. Buy to let product switch and further advance

Existing buy to let clients have access to a similar line up of products for product switches or further advances. Fixed rate and discounted variable products share many of the same features as the new business range. The difference lies in product switch and further advance fees, which are usually £800 for buy to let.

As with residential lending, discounted variable buy to let products allow unlimited overpayments. Fixed rate products normally allow overpayments of up to 10% of the balance each year without triggering early repayment charges.

Why Cambridge for intermediaries might be for your clients

For mortgage brokers who value a mutual approach, Cambridge for intermediaries links you directly with a long-established building society. The Cambridge Building Society has existed since 1850 and is one of the largest mutuals in the UK by assets.

Clients who save or borrow from this building society become members, which supports a community-focused outlook. From a product perspective, Cambridge for intermediaries offers residential mortgages for purchases and remortgages up to 95% LTV.

They can also provide discounted variable products with no early repayment charges and generous overpayment allowances. Plus, Cambridge for intermediaries has buy to let products for standard investors, expat borrowers, holiday lets, and limited companies.

These products sit on top of criteria that cover different ages, residency statuses, property construction types, and credit situations. For many mortgage brokers, this mix can help you support your clients across a variety of scenarios. You also get to work with a trusted building society that focuses on home ownership and safe savings.

But if you're looking for other mortgage lenders aside from Cambridge for intermediaries, we have other guides for lenders with intermediary-only platforms:

 

You can also browse our Guides section for more valuable insights on banks, mortgage lenders, and building societies.

LATEST NEWS

Research finds AI-triggered layoffs not translating to ROI

Research finds AI-triggered layoffs not translating to ROI

Overseas demand rises, but brokers see little lift in mortgage activity

Overseas demand rises, but brokers see little lift in mortgage activity

Bank to disappear from high street after 216 years

Bank to disappear from high street after 216 years