Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Gable launches 100% LTV mortgage range targeting first-time buyers
Gable Mortgages has launched a 100% loan-to-value mortgage product range as it targets a larger share of the £82bn UK first-time buyer market. The launch includes products for both standard residential purchases and selected new-build homes, and is described as a direct response to market demand, with unaffordable deposit requirements identified as the biggest barrier facing prospective first-time homeowners in the UK.
Key product features
The new range offers 100% LTV with interest rates from 6.4%, a five-year fixed rate term, and fees of 0–1% depending on the product. Enhanced affordability provisions are available for eligible key workers.
Gable Mortgages' standard five-year fixed Zero Deposit Mortgage for established residential properties is priced at 6.60% and is open to eligible first-time buyers and next-time buyers. Loan sizes range from £125,000 to £1m, with repayment terms from five to 35 years.
Applicants must be aged 21 or over at the start of the mortgage and no older than 75 at the end of the term. A minimum income of £27,780 applies, reducing to £25,000 for eligible key workers.
New-build route
A 100% LTV product is also currently available on select Barratt Redrow developments, opening a no-deposit route into the new-build market through the UK's largest housebuilder. This five-year fixed-rate product is priced at 6.40%.
Why it matters for the rental sector
Commenting on the launch, Chris Eaton, Co-CEO of Gable Group, said the firm is seeking to support prospective homeowners across the UK for whom rising house prices and deposit requirements have made home ownership more difficult to achieve.
He noted that changes in the private rented sector, including those associated with the Renters' Rights Act, together with increases in living costs, utility bills and wider global financial market conditions, can materially impact an individual's ability to save for a deposit.
Eaton said the 100% LTV product range combines fixed-rate certainty, competitive rates and a disciplined underwriting approach, helping eligible, creditworthy customers to access home ownership without a traditional deposit.
For letting agents and inventory clerks, the launch shows that deposit-saving pressures, shaped in part by private rented sector reforms, are driving product innovation aimed at moving tenants into home ownership.
Source: Mortgage Strategy