Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
Gable Mortgages launches 100% LTV range with rates from 6.4%
Gable Mortgages has launched a 100% loan-to-value (LTV) mortgage range, with rates starting at 6.4%. The lender said the launch was in "direct response" to "unaffordable" deposit requirements for prospective buyers.
A 100% LTV product is available on selected Barratt Redrow properties, starting at 6.4%. The standard five-year fixed zero-deposit mortgage is priced at 6.6% and is open to both first- and next-time buyers.
Why the lender says it is acting
Chris Eaton, co-CEO of Gable Group, said the lender wants to support prospective homeowners across the UK for whom rising house prices and deposit requirements have made homeownership harder to achieve.
Eaton also pointed to changes in the private rented sector, including those associated with the Renters' Rights Act, alongside increases in living costs, utility bills and wider global financial market conditions, which he said can materially affect an individual's ability to save for a deposit.
What this means for the rental market
For letting agents and inventory clerks, the arrival of another no-deposit option is relevant against the backdrop of ongoing change in the private rented sector. The lender explicitly links the Renters' Rights Act and rising living costs to would-be buyers' ability to save, suggesting some tenants may look to exit the rental market through zero-deposit routes where they qualify.
Eaton said Gable Mortgages believes lenders have an important role in developing responsible solutions for aspiring homeowners. He described the 100% LTV range as combining fixed rate certainty, competitive rates and a disciplined underwriting approach, helping eligible, creditworthy customers access homeownership without a traditional deposit.
Source: Mortgage Solutions