Mortgages are aimed at potential first-time buyers who can afford mortgage payments but are unable to save for a traditional deposit while paying rising rent and living costs. It also targets home operators who may not have suitable equity available.
The mortgages are five-year fixed rate deals with rates starting at 6.4%. Charges may apply depending on the product.
Among the new range is a 100% loan-to-value (LTV) mortgage which is also available on selected Barratt Redrow projects. It is designed to open a deposit-free route into the new construction market through housebuilders. The five-year fixed-rate product has a yield of 6.40%.
Meanwhile, Gable also has a standard 5-year no fixed deposit mortgage for existing residential properties at 6.60% which is open to qualified first time and next time buyers, with loan sizes from £125,000 to £1 million. Repayment periods range 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, and have a minimum income of £27,780, falling to £25,000 for eligible key workers.
For this deal, there is a product fee of 1% of the loan, which includes the standard mortgage appraisal fee.
For qualifying purchases under the Custom New Construction Offer, there is no product fee because the developer covers both the product costs and the standard appraisal.
For both deals, applicants will undergo a full underwriting evaluation, including income and expenses, a credit history review and an interest rate stress test.
Chris Eaton, co-chief executive of Gable Group, said: “We seek to support prospective homeowners across the UK for whom rising house prices and deposit requirements have made home ownership more difficult.
“Changes in the private rental sector, including those associated with the Tenants’ Bill of Rights, coupled with increases in the cost of living, utility bills and wider global financial market conditions, can materially impact an individual’s ability to save for a deposit.
“Against this evolving backdrop, Gable Mortgages believes lenders have an important role to play in developing responsible solutions for aspiring homeowners.
“Our 100% LTV product suite combines the certainty of a fixed rate, competitive rates and a disciplined underwriting approach, helping qualified, creditworthy customers access homeownership without the need for a traditional deposit.”
You can find out more about no deposit mortgages and what to consider here.
